Which of the following might help to solve a free-rider problem? Select all that apply: using the political process to institute taxes to cover the cost of a public good asking fewer individuals to bear more of the cost to produce a public good to make up for free riders appealing to free riders' sense of morality and responsibility employing social pressure to encourage individuals to contribute to community projects and fundraising efforts

Which of the following might help to solve a free-rider problem? Select all that apply: using the political process to institute taxes to cover the cost of a public good asking fewer individuals to bear more of the cost to produce a public good to make up for free riders appealing to free riders' sense of morality and responsibility employing social pressure to encourage individuals to contribute to community projects and fundraising efforts

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please think of one example of a product that you use on a regular basis for which some of the cost of production or consumption are externalized. Please explain. What will be the long-term cost for or impact on society of this externalization? How much more would you be willing to pay for that product in order to have all costs factored into the price?
How might price controls on gasoline lead to human fatalities in an area where there is an oncoming hurricane?
Assume that the city government announces that public parks in the city belong to the public and no fees will be charged for the use of the parks. However, members of the public who use the parks will be asked to donate a sum of their choice for using the park. Do you think people will donate voluntarily? Please give an explanation which includes the concept of the free-rider problem.
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A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently Pays less for the good or service benefits from a market transaction pays a pollution tax to balance social costs
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