Consider two possible public works projects: Project A and Project B. The costs and benefits of each project to each citizen depends on the citizen's height. The costs and benefits of each project to tall citizens and short citizens are summarized in the table below:

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
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Consider two possible public works projects: Project A and Project B. The costs and benefits of each project to each citizen
depends on the citizen's height. The costs and benefits of each project to tall citizens and short citizens are summarized in
the table below:
Benefits
Tall Citizens
Short Citizens
Costs
Tall Citizens
Short Citizens
Project A
$170
$150
$210
$100
Project B
$130
$100
$100
$90
What is the distributional weight of each dollar spent or received by a tall citizen (relative to that of a short citizen) that would
make the values of these two projects be equal?
[NOTE: Please round your answer to 2 decimal places.]
Transcribed Image Text:Consider two possible public works projects: Project A and Project B. The costs and benefits of each project to each citizen depends on the citizen's height. The costs and benefits of each project to tall citizens and short citizens are summarized in the table below: Benefits Tall Citizens Short Citizens Costs Tall Citizens Short Citizens Project A $170 $150 $210 $100 Project B $130 $100 $100 $90 What is the distributional weight of each dollar spent or received by a tall citizen (relative to that of a short citizen) that would make the values of these two projects be equal? [NOTE: Please round your answer to 2 decimal places.]
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