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Exam 22: Frontiers in Microeconomics

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Question 231

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Table 22-10 The town of Franklin is facing a severe budget shortage. The town administrator has proposed four options to balance the budget: increase property taxes (taxes) , cut the school arts budget (arts) , turn off half of the streetlights in the town (streetlights) , reduce police patrols (police) . Exactly one of the four choices will prevail, and the choice will be made by way of pairwise voting, with the majority determining the outcome on each vote. The preferences of the voters are summarized in the table below. -Refer to Table 22-10. If the town administrator asks voters to choose first between increasing taxes and turning off half of the streetlights, and then between the winner of the first vote and reducing police patrols, and then between the winner of the second vote and cutting the school arts budget, which choice will win the final vote?

A) arts
B) police
C) streetlights
D) taxes

E) B) and D)
F) A) and C)

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Question 232

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The field of economics in which the tools of economics are used to understand the functioning of government is

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Question 233

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