good. Which of the following is a disadvantage of this mechanism? Ⓒa. It may lead to under-provision of the public good due to free-riding. b. none of the above c. It eliminates the free-rider problem. d. It guarantees equal contributions from all individuals.

good. Which of the following is a disadvantage of this mechanism? Ⓒa. It may lead to under-provision of the public good due to free-riding. b. none of the above c. It eliminates the free-rider problem. d. It guarantees equal contributions from all individuals.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 22CTQ: Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are...

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Question

In the voluntary contribution mechanism, individuals have the freedom to contribute to a public
good. Which of the following is a disadvantage of this mechanism?
a. It may lead to under-provision of the public good due to free-riding.
b. none of the above
It eliminates the free-rider problem.
d. It guarantees equal contributions from all individuals.
e. It ensures efficient allocation of resources.
C.
x

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