Journal #5 Key Principles: Chapter 30 and Application #2given emphasis to Public
ID: 1095082 • Letter: J
Question
Journal #5
Key Principles: Chapter 30 and Application #2given emphasis to Public Goods and Public Choice and specifically: - external benefits and public goods.
Read Application 1 (in your textbook) Free Riders and the Three-Clock Tower How can we respond to the free-rider problem?
This (factual, analytical {problem solving using assumptions}, and conceptual assignment is associated with the learning outcome relative to understanding how we respond to the free-rider problem.
Answer the following 5 questions.
1) Recall the Application. A town tried to prevent free riding by:
A) not putting a clock face on the tower in the direction of those the one who refused to contribute to building the clock tower.
B) setting the time wrong on the face of the tower in the direction of those who refused to contribute to building the clock tower.
C) making it illegal for those who did not contribute to the clock tower to use it.
D) taxing those who would not contribute to the clock tower project.
2) Recall the Application. Before people generally carried their own time pieces, towns often built their own clock towers. In these situations there was a free rider problem because:
A) many people at that time refused to pay taxes.
B) towns paid for the clock towers with voluntary contributions.
C) few people could tell time.
D) only a small fraction of the population was taxed by the towns.
3) 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 it s money.
4) During pledge week your local public television station asks viewers to contribute to the station. People who watch public television but do NOT contribute are
A) free-riding.
B) engaged in moral hazard.
C) those who do not value public television.
D) causing adverse selection.
5) Which of the following is likely to overcome the free-rider problem?
A) offer people a private gift for contributing
B) arrange for matching contributions
C) appeal to peoples' sense of civic or moral responsibility
D) all of the above
Explanation / Answer
i think that
1)C
2)A
3)B
4)A
5)D
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