Briefly explain the free rider problem with respect to the funding of local public schools. How does the Tiebout model propose to solve this problem

Q: Indicate whether a municipal or metropolitan level of government is better able to provide the local…

A: Goods that are public are described as those commodities which are "non-excludable" in nature and…

Q: Problem 4 Using the graph below, explain why it would be socially efficient at the MARKET…

A: Consumption of marijuana creates negative externality in the market . When a third party incurs…

Q: Why do economists care about positive externalities?

A: The externalities are the additional costs or benefits experienced by the person who is not a part…

Q: Why are efficiency taxes preferred to regulatory policies as methods remedy externalities?

A: Externalities alludes to circumstances when the impact of creation or utilization of labor and…

Q: Consider the following event and identify which type of externality it creates: “…. Congestion…

A: 'Congestion caused by driving car to work' This means that too many drivers driving the car to work…

Q: An externality arises when a firm or person engages in an activity that affects the well-being of a…

A: The benefit or cost of an economic activity incurred on a third party who is not involved in the…

Q: A college education creates positive externalities. Use the accompanying graph which represents the…

A: Externalities refer to the cost or benefit of an economic transaction incurred on a third party who…

Q: Using a supply and demand diagram, demonstrate how a negative externality leads to market…

A: Externalities means when the production of economic agents causes benefits or cost to others. When…

Q: Why do externalities cause market failure? What types of government actions or regulations can be…

A: The answer is as follows:-

Q: Explain the difference between positive and negative externalities along with an example.

A: Answer: An externality exists when some economic agent’s welfare (utility or profit) is directly…

Q: Classify each statement as a positive externality associated with education or a negative…

A: In an economy, a positive externality implies the additional benefit of an activity of an individual…

Q: List some of the ways that the problems caused by externalities can be solved without government…

A: An externality is a cost or benefit that a producer incurs or receives but does not bear or pay for.…

Q: Knowledge creates positive externality; therefore, governments should intervene in the education…

A: Positive externality occurs when the consumption or production of a good causes a benefit to a third…

Q: An externality arises when a firm or person engages in an activity that affects the wellbeing of a…

A: In a market, two types of externalities are positive and negative that depends upon the effect of an…

Q: What does it mean to demand that companies "internalize" their externalities?

A: There are 2 types of externalities - positive and negative. Suppose a corporation manufactures a…

Q: How do public television stations, like PBS, try to overcome the free rider problem?

A: When people in society are taking the benefits of goods and services without paying for them, then…

Q: Using the concepts of externalities and market failure, examine the possible economic effects of…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: involved in supporting investments in new technology?

A: Technology: It refers to the particular type of inventions or machines which can help in reducing…