Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 11, Problem 3PA
Sub part (a):
To determine
The free rider problem.
Sub part (b):
To determine
The free rider problem.
Sub part (c):
To determine
The free rider problem.
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Students have asked these similar questions
Mr. Saeed Ahmed loves watching sports channel on his local public TV station, but he never sends any money to support the station during its fund-raising drives.
What name do economists have for people like Mr. Saeed Ahmed?
b. How can the government solve the problem caused by people like Mr. Saeed Ahmed?
c. Can you think of ways the private market can solve this problem? How does the existence of cable TV alter the situation?
How do public television stations, like PBS, try to overcome the free rider problem? Define the problem, and then discuss the solutions.
[Be sure to explain, what you mean by public good, and what is the free rider problem. Then use the explanation to apply to the public television situations]
What is the free-rider problem? Why does the free-rider problem induce the government to provide public goods? How should the government decide whether to provide a public good?
Chapter 11 Solutions
Principles of Microeconomics
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Similar questions
- What is a practical way in which the free rider problem can be addressed by the private market? A Consumers agreeing to not overuse the good if it is available B The government implementing a tax in the market C The government verbally encouraging producers to make the product for the good of society D Private producers being able to charge a fee to use the goodarrow_forwardWhat happens to the private benefit curve and the private cost curve?arrow_forwardEconomics: Public Economics Question: 1 Figure 3. On the graph, Q represents the quantity of foam and P represents the price of foam. Refer to Figure 3. If the government imposed a corrective tax that successfully moved the market from the market equilibrium to the social optimum, then tax revenue for the government would amount to (do not use $ sign) Guess: 10,000 (with margin: 0) Question: 2 Which of the following statements is correct? a. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate. b. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a higher cost. c. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost. d. Corrective taxes distort economic incentives. Question 3: According to the Coase theorem, externalities can be internalized when transactions costs are zero through:…arrow_forward
- What do you see as the biggest flaw in using benefit-cost analysis to guide public policy?arrow_forwardWhat is an externality? How do they affect market efficiency? If an externality is present, where is the socially optimal point of production? Where will the market produce if there is no government intervention? How do we get from the private market equilibrium to the socially optimal one?arrow_forwardDefine public good?arrow_forward
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