Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
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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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.
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Chapter 11 Solutions
Principles of Microeconomics (MindTap Course List)
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Similar questions
- What happens to the private benefit curve and the private cost curve?arrow_forwardIdentify the characteristics of a public good. a. Why do public goods exist? b. What is the problem that comes about due to public goods? c. Which of the following are public goods: parks, police services, welfare payments to the poor, production of energy, space exploration? d. Briefly describe how the free rider problem can be overcome. e. Briefly explain why markets often have a difficult time producing public goods.arrow_forwardCompare and contrast private and public goods. Give an example for each kind of good.arrow_forward
- The south African government develops targets that pertain to healthcare and education. Which of the following statements explains why government provides these two goods? A. The benefit to society of healthcare and education is extremely low. B. The benefits that society receives from health care and education exceed those that accrue to an individual user. C . The government spends money on health care and education because they are public goods D. Health care and education only produce negative externalities.arrow_forwardHow externalities and their impact the economy? explain the negative and the positive externalities and how it affects the market.arrow_forwardHow are public goods different from private goods?arrow_forward
- Choose a good or service that you would like to see the government provide more funding towards. 1. Explain how this good or service might be considered a public good. 2. Explain how this good or service might be an example of a positive externality problem.arrow_forwardDefine public good?arrow_forward1. Choose one of the approaches listed below for protecting elephants from poachers in African countries. A. The government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all local people to enter the parks or to injure either the elephants or their habitat in any way. B. The government sets up national parks and designates ten villages around the park's edges as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park. 2. Depending on the approach you have chosen (A or B), explain how the incentives will affect the local villagers, who are often very poor. 3. Which approach (A or B) seems more likely to help the elephant population?4. Discuss the practice of poaching elephants and the need for environmental protection? 5. Explain how the practice of poaching elephants is a negative externality?arrow_forward
- Briefly define each of the following concepts.a. An in medias res cost-benefit analysis.b. The marginal excess tax burden.c. Allocative efficiency.d. A positive externality in production.e. A shadow price.arrow_forwardWhich of the following will most likely generate positive externalities of consumption? a. A hot dog vendor. b. Public education. c. An automobile d. A city bus e. A polluting factoryarrow_forwardWhy is a price change NOT an externality? Select one: a. A price change affects bystanders, not market participants. b. A price change does NOT change total costs or benefits, it only changes who buys the good. c. A change in price changes the marginal benefit of a good but does NOT change who buys and sells the good. d. A price change redistributes costs but not benefits.arrow_forward
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