Question

The free-rider problem arises when: 1. a good is nonexcludable 2. goods are nonrival in consumption...

The free-rider problem arises when:

1. a good is nonexcludable
2. goods are nonrival in consumption
3. there is overuse of a common resource
4. the marginal social cost of producing a good exceeds the private marginal cost

Which of the following would be considered a public good?

1. a football staduim
2. a toll bridge
3. national defense
4. a private office building

The government could internalize a positive extrnality of consumption by providing

1. a subsidy
2. a moral hazard
3. a technology spillover
4. an adverse selection

If firms had to pay for the externalities they cause, the supply curve would

1. become inverted
2. shift to the right
3. remain unaffected
4. shift to the left


Homework Answers

Answer #1

The free-rider problem arises when:

1. a good is nonexcludable

explanation ; since we cannot exclude the user from the benefits of the good or service, free-rider problem arises

Which of the following would be considered a public good?

3. national defense

National defense is non rival and non-excludable

The government could internalize a positive extrnality of consumption by providing

1. a subsidy

Positive externality - subsidy
Negative externality - tax

If firms had to pay for the externalities they cause, the supply curve would

4. shift to the left

Pls give thumbs up

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.) An FM radio signal is an example of a good that is A private. B...
1.) An FM radio signal is an example of a good that is A private. B nonrival in consumption. C social. D nonexcludable in production. 2.) A local park filled with picnickers is A excludable and rival in consumption. B excludable and not rival in consumption. C not excludable and rival in consumption. D not excludable and not rival in consumption. 3.) Under which of the following scenarios would a park be considered a public good? A Visitors to the...
28- Public goods create a free-rider problem because only people who pay for the good or...
28- Public goods create a free-rider problem because only people who pay for the good or service can enjoy the good or service. the good or service is rival in nature. the good or service is excludable. people can enjoy the good or service no matter whether or not they pay for it. 29- For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy's marginal benefit curve? public goods...
1.) Market failure associated with the free-rider problem is a result of A a problem associated...
1.) Market failure associated with the free-rider problem is a result of A a problem associated with pollution. B benefits that accrue to those who don't pay. C losses that accrue to providers of the product. D market power. 2.) If everyone benefits from helping the poor, A government intervention cannot improve social well-being. B eliminating taxes aimed at redistributing income will make rich people better off. C taxing the wealthy to raise living standards of the poor can potentially...
1. The "free-rider" problem refers to a situation in which: some people receive welfare benefits to...
1. The "free-rider" problem refers to a situation in which: some people receive welfare benefits to which they are not entitled. the benefits associated with public goods cannot be denied to users, whether or not they are willing to pay for them. government must subsidize public transportation. the benefits associated with private goods cannot be denied to those who are unwilling to pay for them. 2. According to the Coase Theorem, an efficient outcome can be achieved without any need...
1. If property rights are clearly defined and transaction costs are low, the free rider problem...
1. If property rights are clearly defined and transaction costs are low, the free rider problem may still prevent mutually beneficial trades from taking place. the possibility of trade means that all costs and benefits will be taken into account, so there will be no externalities. the possibility of trade means that only positive externalities will occur. there will still be some externalities, because property rights have only to do with ownership. 2. An incumbent president can take advantage of...
#1 The government can solve the free-rider problem through the following except A) supporting information collection...
#1 The government can solve the free-rider problem through the following except A) supporting information collection of private individuals or groups. B) producing information to help investors distinguish good from bad firms C) discouraging firms to reveal honest information D) collecting information from firms and providing it to the public for free #2 Collateral reduces the consequences of adverse selection because it A)increases the expected losses on the loan B) increases the lender's losses in the event of a default....
1. Until they are on the job an employer might not know the quality of a...
1. Until they are on the job an employer might not know the quality of a salesperson they hire, and while on the job an employer may not be able to observe how much effort they put in. Suppose that paying commission to salespeople, rather than a salary, both attracts more talented salespeople and encourages any given salesperson to work harder. Then, Group of answer choices Paying commission reduces a moral hazard problem, but increases an adverse selection problem Paying...
1. Think of a time when you experienced diminishing marginal utility? 2. Explain in detail how...
1. Think of a time when you experienced diminishing marginal utility? 2. Explain in detail how and why your marginal utility diminished upon continued consumption of the good/service. 3. What happened to your total utility as you continued to consume the product? At which point did you reach your maximum total utility? 4. Explain how diminishing marginal utility might affect the price of additional units of consumption of a product and try to provide a real-life example.
1. Explain two main reasons why we need to study public finance 2. Distinguish between the...
1. Explain two main reasons why we need to study public finance 2. Distinguish between the “organic view” and “mechanistic view” of the existence of government 3. Explain the concept of market failure and discuss five reasons why there is market failure 4. What is meant by market failure? Identify and discuss four conditions under which the market fails to optimally allocate resources. 5. What is meant by the term government failure and explain five reasons why there may be...
1. A ________ externality exists when the number of customers who purchase a good or use...
1. A ________ externality exists when the number of customers who purchase a good or use it influences the quantity demanded. network production consumption distribution regulation 2. The government has exercised control over monopoly practices since the passage of the Morrill Land-Grant Act of 1890. Gold Standard Act. Crimes Act. Sherman Act. Foraker Act of 1900. 3. Market-created and government-created barriers are the same thing. are regarded by all economists as bad. increase competition in markets. create monopolies. are problems...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT