1. When people vote to provide a public good, the most efficient outcome will be reached when __________.

a proportional tax is used instead of a headcount tax.

The social benefits are greater than the total costs.

a private company provides the good instead of the government.

all of the individuals paying the tax have a marginal benefit greater than the tax amount.

2. After the pandemic, if the city of Pasadena increased sales tax by 1% to help pay for economic recovery programs, this would be considered a ________.

Progressive tax

Proportional tax

Headcount tax

Regressive tax