The free-rider problem arises because:
A. once provided, a public good is available to all regardless of whether they paid for it.
B. poor people cannot afford to contribute to public goods.
C. enforcement of tax laws is inadequate.
D. people disagree with how the government spends its money.
Answer: A
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Macroeconomics is the study of aggregate variables such as national production and unemployment
Indicate whether the statement is true or false
Unlike the Classical economists, Keynes believed that money could affect real economic activity through its effects on
A) the price level. B) the interest rate. C) savings. D) velocity.
A buyer's consumer surplus on a unit of a good is its value to that buyer minus what the buyer actually pays for it
a. True b. False
When the Fed raises the legal reserve requirement, it
a. lowers the cost of borrowing from the Fed, allowing banks to make more loans b. raises the cost of borrowing from the Fed, disallowing banks from making the same quantity of loans c. increases the amount of excess reserves that banks hold, allowing them to make more loans d. increases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans e. decreases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans