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1. The chart to the right shows four different flood control programs for a city. Which project should the city undertake? Why?
How could Huey make sure that they the vote would support the project?
Will this society engage in this project if the decision is made by majority vote?
2. Consider a society made up of three people (Huey, Dewy & Lewy) who decide everything by majority vote. The society has the choice to engage in a project that will bring benefits of $1150 to the whole society, but will cost in total $900. The cost of the project will be paid equally by all three people in society – everyone will pay $300. However, the benefits will not be spread evenly, Huey will benefit by $700, Dewy will benefit by $250, and Lewy will benefit by $200.
Is this project economically efficient?
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