Question 2
0.8 pts
Suppose each of 20 neighbours on a street values street repairs at $3,000. The cost of the street repair is $40,000. Which of the following statements is true?
It is efficient for each neighbour to pay $3,000 to repair the section of street in front of his/her home.
It is not efficient to have the street repaired.
It is efficient for the government to tax the residents $2,000 each and repair the road.
None of these answers are true.