Consider the following problem with 17 voters and 3 candidates. 6 people rank a over b and b over c. 3 people rank c over a and a over b. 4 people rank b over a and a over c. 4 people rank b over c and cover a. Who is the Condorcet Winner? a. b Ob. There is no Condorcet winner C. a Od. C

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Consider an economy with three people and two goods: private good (x) and public good (y). Suppose that marginal rate of
transformation is 1. (one unit of private good is needed for the production of one unit of public good). The utility functions of the
individuals are given below:
U₁ = 2y¹/2 + x₁
U₂ = 4y¹/2 + X2
U3 = 6y¹/2 + x3
What is the optimal level of public good?
Answer:
36
The correct answer is: 36
Consider the following problem with 17 voters and 3 candidates. 6 people rank a over b and b over c. 3 people rank c over a and a
over b. 4 people rank b over a and a over c. 4 people rank b over c and cover a. Who is the Condorcet Winner?
a. b
Ob. There is no Condorcet winner
C. a
d. c.
Transcribed Image Text:Consider an economy with three people and two goods: private good (x) and public good (y). Suppose that marginal rate of transformation is 1. (one unit of private good is needed for the production of one unit of public good). The utility functions of the individuals are given below: U₁ = 2y¹/2 + x₁ U₂ = 4y¹/2 + X2 U3 = 6y¹/2 + x3 What is the optimal level of public good? Answer: 36 The correct answer is: 36 Consider the following problem with 17 voters and 3 candidates. 6 people rank a over b and b over c. 3 people rank c over a and a over b. 4 people rank b over a and a over c. 4 people rank b over c and cover a. Who is the Condorcet Winner? a. b Ob. There is no Condorcet winner C. a d. c.
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