How does government provision of public goods solve the free rider problem?
A) Governments can impose compulsory taxes to pay for public goods.
B) Governments can convert nonrival goods to rival goods by assigning property rights.
C) Governments can tax public goods to prevent over-use of the resources.
D) Governments cannot solve the free rider problem
A
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What arguments can be made for government regulation of concentrated markets? What arguments can be made against such government regulation?
What will be an ideal response?
For the majority of the U.S. population ________
A) consumption is driven solely by current income B) consumption smoothing is possible C) a change in lifetime resources will not change current consumption D) a change in lifetime resources will not change future consumption
The assumption that individuals will not intentionally make decisions that will leave them worse off is known as
A) microeconomic analysis. B) macroeconomic analysis. C) a model or theory. D) the rationality assumption.
Do monetarists favor rules or discretionary policy? Why?
What will be an ideal response?