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Suppose that Timmy lives in a neighborhood where graffiti is common. People's cars and the sides of houses are often vandalized with graffiti In response to the vandalism, the people in the neighborhood have proposed a voluntary community fund to pay for extra police patrols. There are 1000 people in Timmy's neighborhood, and each is recommended to contribute $10 a month Timmy's car has recently been vandalized and he is concerned it may happen again. Although he believes that he will benefit from the extra police patrols, Timmy has decided to take a free-rider approach Given his thinking, how much will Timmy contribute to the fund? Timmy's contribution: $ Assume that the entire neighborhood has the same mentality as Timmy. What will occur? The rate of graffiti in the neighborhood will increase significantly Everyone will contribute money towards the community fund, yielding higher rates of police patrol and less graffiti No one will contribute to the community fund, resulting in no changes None of the choices are correct

Suppose that Timmy lives in a neighborhood where graffiti is common. People's cars and the sides of houses are often vandalized with graffiti In response to the vandalism, the people in the neighborhood have proposed a voluntary community fund to pay for extra police patrols. There are 1000 people in Timmy's neighborhood, and each is recommended to contribute $10 a month Timmy's car has recently been vandalized and he is concerned it may happen again. Although he believes that he will benefit from the extra police patrols, Timmy has decided to take a free-rider approach Given his thinking, how much will Timmy contribute to the fund? Timmy's contribution: $ Assume that the entire neighborhood has the same mentality as Timmy. What will occur? The rate of graffiti in the neighborhood will increase significantly Everyone will contribute money towards the community fund, yielding higher rates of police patrol and less graffiti No one will contribute to the community fund, resulting in no changes None of the choices are correct

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that Timmy lives in a neighborhood where graffiti is common. People's cars and the sides of houses are often vandalized with graffiti In response to the vandalism, the people in the neighborhood have proposed a voluntary community fund to pay for extra police patrols. There are 1000 people in Timmy's neighborhood, and each is recommended to contribute $10 a month Timmy's car has recently been vandalized and he is concerned it may happen again. Although he believes that he will benefit from the extra police patrols, Timmy has decided to take a free-rider approach Given his thinking, how much will Timmy contribute to the fund? Timmy's contribution: $ Assume that the entire neighborhood has the same mentality as Timmy. What will occur? The rate of graffiti in the neighborhood will increase significantly Everyone will contribute money towards the community fund, yielding higher rates of police patrol and less graffiti No one will contribute to the community fund, resulting in no changes None of the choices are correct
Transcribed Image Text:Suppose that Timmy lives in a neighborhood where graffiti is common. People's cars and the sides of houses are often vandalized with graffiti In response to the vandalism, the people in the neighborhood have proposed a voluntary community fund to pay for extra police patrols. There are 1000 people in Timmy's neighborhood, and each is recommended to contribute $10 a month Timmy's car has recently been vandalized and he is concerned it may happen again. Although he believes that he will benefit from the extra police patrols, Timmy has decided to take a free-rider approach Given his thinking, how much will Timmy contribute to the fund? Timmy's contribution: $ Assume that the entire neighborhood has the same mentality as Timmy. What will occur? The rate of graffiti in the neighborhood will increase significantly Everyone will contribute money towards the community fund, yielding higher rates of police patrol and less graffiti No one will contribute to the community fund, resulting in no changes None of the choices are correct
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