Question
Subsidized Public Goods and Voting Patterns
Your State Government has decided to establish a program for sending children who are poor to the State University. The Government will foot the bill for all function textbooks and teacher salaries for the disadvantaged students. Your Government claims that this new University project will help kids from uneconomically successful. The subsidy cost of maintaining the poor kids and University will be $200 million a year. The Government will give the University system a subsidy to run this social improvement project. The Government will finance this subsidy with a new unit tax on the price of gasoline. In addition, the establishment of the University subsidy occurred after it was successfully voted on by the people's elected legislators (Congress).
Explanation / Answer
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