16. In which of the cases below is there the potential for a free-rider problem?

Question

16. In which of the cases below is there the potential for a free-rider problem? (1 pt. CHOOSE 1) A) half-off sales at department stores B) voluntary payments for a smog reduction program C) group projects where all members have clearly assigned tasks and are responsible for presenting their work D) cable Internet service Chapter 20 Use the following to answer questions 17-19: Figure: Kidney Trade Ban Policy Spectrum C A Free market trade in kidneys 8 Ban on kidney trade 17. Refer to the figure. Which of the voters is the median voter? (1 pt.) 18. Refer to the figure. If there are only two candidates, A and B, which candidate will win the election? (1 pt.) 19. Refer to figure. If A, B, and C are all candidates in the election, based on the median voter theorem, which candidate will win the election? (1 pt.)

Explanation / Answer

First question is answered below

16.

Correct option: (b)

Reason: In case of payments to be made towards installing a public good, people though want to enjoy the benefits of it but still fail to not pay for it and instead have others pay for it. This is because such goods are non rival and in excludable and making others pay for the benefits will maximize their personal benefits, making it a free rider problem.

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