Positive externalities tend to create free-rider problems because positive externalities
A) appeal more to extroverts than to people who are reflective.
B) are spill over benefits to people who don't pay for them.
C) are concentrated in the hands of people living on unearned income.
D) arise primarily from government programs.
B
You might also like to view...
Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners, license holders would not earn large profits from operating taxis in the city because
A) people would drive their own cars. B) people would substitute buses for taxis. C) taxis are not a necessity of life. D) the cost of owning a license would eat up the potential profits from operating a taxi. E) the demand would fall as taxi fares rose.
Explain the impact on the domestic economy of an import quota on oranges.
What will be an ideal response?
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
In the long run, imports are paid for by
A. gold or other universally accepted monies. B. investment. C. dollars. D. exports.