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or Questions 31 and 32, consider the potential provision of a pure public good (that can be produced in three different vels: low, medium, or

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or Questions 31 and 32, consider the potential provision of a pure public good (that can be produced in three different vels: low, medium, or high) in a five person society (consisting of Amy, Ben, Chris, Dan, and Eric). The table below rovides a summary of Total Costs and individual benefits from different levels of provision of this pure public good. Zero Provision Low Provision Medium Provision High Provision Total Costs $0 $5,000 $10,000 $15,000 Amy's Total Benefits $0 $3,500 $4,000 $4,250 Ben's Total Benefits $2,000 $3,500 $4,500 Chris' Total Benefits SO $1,750 $3,000 $3,750 Dan's Total Benefits $0 $1,250 $2,000 $2,500 Eric's Total Benefits $0 $1,000 $1,750 $2,250 31. The efficient level (i.e., Social Surplus maximizing level) of provision of this public good is A. Zero Provision B. Low Provision C. Medium Provision D. High Provision 32. Suppose this society is going to have a vote on the following proposal: "We will provide 'High Provision' of this public good and impose mandatory taxes of $3,000 on each person in society (to exactly cover the costs of providing the good)." The proposal is approved and enacted so long as a majority of people votes in favor of it. If it fails to get majority support, 'Zero Provision' will be chosen. We should expect the proposal to A. get majority support, resulting in an increase in Total Social Surplus and making all five individuals better off (relative to 'Zero Provision'). B. get majority support, resulting in an increase in Total Social Surplus but making some individuals better off and others worse off (relative to 'Zero Provision'). C. get majority support, resulting in a decrease in Total Social Surplus but making some individuals better off and others worse off (relative to 'Zero Provision'). D. fail to get majority support

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