Microeconomics 19th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 4

Explain how affirmative and negative majority votes can sometimes lead to inefficient allocations of resources to public goods. Is this problem likely to be greater under a benefits-received or an ability-to-pay tax system? Use the information in Figures 17. 1a and 17. lb to show how Society might be better off if Adams were allowed to buy votes.