24. Suppose the cost to build the park is $24 per acre and that the residents ha

Question

24. Suppose the cost to build the park is $24 per acre and that the residents have apreed to split the cost of building the park equally If the residents vole to determine the size of park to build, basing their decision solely on th own willingness to pay (and trying to maimue their own surplus), what is the largest park size foe which the majority of eesidents would vote "yes? a. 0 acres b. I acre e. 2 acres d 3 acres 25, Suppose the cost to build the park is $24 per acre and hat the residents have agreod to split th cost of building the park equally. If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park, how mach total surplus wil Amber roceive Principle of Microeconomies, Fall 2017 Hea ework #3 26. Lump-sum taxes are rarely used in the real woeld because a while lump-sum tases have low administrative burdens, they hanve high deadweight losses b while lump-sum taxes have low deadweight losses, they have high administrative burdens e. lump-sum taxes are often viewed as unfair because they take the same amount of money from both Instructor: Hanel Lee Due: 12 December 2017 (Before class) poor and rich. d. lump-sum taxes are very inefficient 27. Vertical equity states that tax payers with a greater ability to pay taxes should a. contribute a decreasing proportion of each increment in income to taxes. b contribule a larger amouni than those with a lesser ability to pay e, be less subject to administrative burdens of a tax d. be less sobjoct to tax distortions that lead to deadweight losses. 28. The most efficient tax possible is a a marginal income tax b. lump-sum tax d corporate profit tax 29·The benefits principle is wed to justify a. sales taxes. b. gasoline taxes. C. "sin" taxes on cigarettes and alcoholic beverages d. personal income taves. 0. The benefits principle is wsed to justify a, sales taxes b. gasoline taxes. "sin" taxes on cigarettes and alcoholic beverages. d. personal income tases.

Explanation / Answer

First question is answered below

1. Correct option: 0 acres

Reason: Since people will now have to pay for the park building cost, they will all shrug away from paying for it, as it is general tendency of people to free ride on others.

This will make them willing to pay for nothing and thus nothing gets built.

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