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In the forward estimates (over the next three years) the Queensland Government is set to spend $43.2 billion dollars on road maintenance. There is talk
In the "forward estimates" (over the next three years) the Queensland Government is set to spend $43.2 billion dollars on road maintenance. There is talk that some of this money will go towards building new super highways in Brisbane, generating thousands of jobs for the city. Jeff is complaining to Will that this is an inefficient use of money as no individual Queenslander values road maintenance at that level and that the spending is just to ensure government politicians get re-elected. Which of the following statements are true: Jeff is correct because we should horizontally sum the quantities when dealing with a public good. Jeff is incorrect if the vertical summation of Queenslanders' individual MB from road maintenance exceeds the expenditure. Jeff is correct if the sum of the prices of individual's willingness to pay is less than the expenditure. Individual Queenslanders' MB for the road maintenance expenditure will be equal
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