Question: Explain how affirmative and negative majority votes can sometimes lead to inefficient allocations of resources to public goods. Is this problem likely to be greater

Explain how affirmative and negative majority votes can sometimes lead to inefficient allocations of resources to public goods. Is this problem likely to be greater under a benefits-received or under an ability-to-pay tax system? Use the information in Figures 17.1a and 17.1b to show how society might be better off if Adams were allowed to buy votes.
Figure 17.1a.,b Inefficient votingoutcomes.
Explain how affirmative and negative majority votes can sometime

Total benefit $1150 Total cost $900 Total benefit $800 Total cost = $900 $700 Adams $300 per person tax $300 per- person tax $350 $350 $300 $300 $250 $200 $100 (Votes) (Yes) (No) No) (No) (Yes) 0 Inefficient majority "no" vote Inefficient majority "yes" vote

Step by Step Solution

3.31 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The problem arises because the oneperson onevote rule does not allow voters to register the strength of their preferences In the texts example three p... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

252-B-E-M-E (1942).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!