Question

The exhibit shows the breakdown of benefits and costs for a five-person community considering whether to purchase a $5,000 statue of Adam Smith to put in the center of the public square. If simple majority voting determines the outcome, the statue _______________ be purchased, and the total costs are ______________ the total benefits of the statue.

Answer 1

Answer:

B) will; less than

The exhibit shows the breakdown of benefits and costs for a five-person community considering whether to purchase a $5,000 statue of Adam Smith to put in the center of the public square. If simple majority voting determines the outcome, the statue will be purchased, and the total costs are less than the total benefits of the statue.

Explanation:

Attached is the completed question, including the table used for this question;

From the table;

For Milton, Maria and Kenneth the benefits of the statue is more than the cost levied on them(they would be in support)

For Jaime and maynard the benefits of the statue is less than the cost levied on them (not in support)

Since majority voting will determine the outcome, the statue will be purchased (3 in support and 2 against, majority is in support)

Total cost = $5000

Total benefits = $(1525+1315+505+845+1150) = $5340

Therefore, the total cost is less than the total benefits