Exercise . Answer the 3 questions (found at Stadium Total Total the next slide) on the Cost Benefit bases of the following table that shows the A $ 80 $140 total costs and total benefits facing a city B 100 200 of five different potential baseball C 130 250 stadiums of increasing size. 165 290 . All figures are in E 220 300 millions of dollars.1. Suppose a fiveperson city council must decide via majority voting which of these stadiums to build. Also suppose that each of the stadium sizes has the support of one council member. According to the medianvoter model, the council will ultimately vote in favor of stadium A. A. B. B. C. C. D. D. 2. The marginal cost and marginal benet of stadium B {relative to A] are: A. $20 million and $50 million, respectively. B. $100 million and $200 million, respectively. C. $30 million and $50 million, respectively. D. $20 million and $60 million, respectively. 3. Based on costbenefit analysis, the city should: A. not build any of these stadiums. C. build stadium C. B. build stadium E. 0. build stadium D. \"up\"! Exercise: Answer TRUE OR FALSE 1. The specialinterest effect in government is the reason why firms in some industries are willing to pay huge amounts of money to lobbyists. 2. The U5. is among the countries that have very low levels of political corruption, as reported in the Global Corruption Barometer of 2013. 3. One prediction ofthe medianvoter model is that during elections, candidates will tend to become "centrists." 4. One consequence ofthe paradox of voting is that whoever sets the agenda of a vote could practically predetermine the results of the vote. 5. "Voter failure" is one cause ofgovernment failure. 6. Unfunded liabilities occur when the government considers longterm benefits and costs of projects and approves only those with positive longterm net benefits. I". The "principalagent problem" often arises in public choice when politicians pursue the best interests of their constituents