Which of the following is an example of the free-rider problem?Select one:a.Both Zoe and Zach receive low-cost dental care at the local dental school, so neitherof them pays the full cost of the care.b. Alfred receives a free lunch from the local "Meals on Wwheels" program because of hislow monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch.Bruce owns Buster, a large dog who barks whenever anyone walks near his house.Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walksnear her house, too. Thus, Betty receives free protection from burglars because ofBuster's barking.C.O d. Sam purchases a burger at a fast food restaurant and gets a second burger freebecause the restaurant is having a buy one, get one free sale.Next page

A free rider problem is a type of a market failure wherein the user either underpays or does not pay…

Which of the following is an example of the free-rider problem? Select one: O a. Both Zoe and Zach receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care. O b. Alfred receives a free lunch from the local "Meals on Wheels" program because of his low monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch. O c. Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking. O d. Sam purchases a burger at a fast food restaurant and gets a second burger free because the restaurant is having a buy one, get one free sale.

Which of the following is an example of the free-rider problem? Select one: O a. Both Zoe and Zach receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care. O b. Alfred receives a free lunch from the local "Meals on Wheels" program because of his low monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch. O c. Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking. O d. Sam purchases a burger at a fast food restaurant and gets a second burger free because the restaurant is having a buy one, get one free sale.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please give a detailed solution with an explanation.For the 2 blank answers here are the options:Blank Answer #1:will or will notBlank Answer #2:no one or Valerie or Poornima or Shen
6. To get a hot new toy for their kids, a mob of parents race into a store and pushand che each other to get to the toy aisle first. The strongest and fastest parents grab all the available toys before the slower parents can reach the aisle. Which allocation strategydoes this scenario demonstrate? A. lottery B. sharing C. force * D. authority
Question in image. Been stuck on this for hours. Thanks for your help!
Which of the following describes the difference between "scarcity" and "shortage"? O There is no difference; either word can be used to describe the situation that exists when there is less of a good or service available than people want. O In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price. O There is a shortage of almost everything. Scarcity occurs only if the quantity demanded of a good or service is greater than the quantity supplied at the current market price. O In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.
19)Which of the following best illustrates the ceteris paribus assumption? * a)If the law requires people to wear seatbelts in order to reduce fatality rates, it may also cause people to drive faster. b)Chris notices that when economists discuss policy, they use the word "should" quite a lot, and they tend to disagree c)Felicia argues that since her company makes less profit when it limits its toxic pollution emissions, it must be true that pollution regulations are bad for everyone d)Caitlin notices that all other things being equal, her grades are higher the more time she spends studying
Consider Ron’s demand for after school care for his children. The marginal benefit Ron receives for every hour of childcare is provided in the accompanying table. After school childcare(hours per day) Marginal benefit($ per hour) 1 $32 2 $30 3 $20 4 $14 a. If an hour of childcare costs $24, how many hours will Ron purchase each day? Assume Ron can only purchase care in one-hour increments (no partial hours). b. If an hour of childcare costs $18, how many hours will Ron purchase each day? Assume Ron can only purchase care in one-hour increments (no partial hours).
2. Residents in a town are voting to decide where a new library will be built. The residents homes are on the same street and the "map" of the town is represented below. The letters represent the location of each house. The numbers represent distance in 100 meters (in other words, house 'a' is 100 meters from house 'b' and 1200 meters from house 'i'). Each house- hold would receive a utility of 12 if the library was built in front of that house; utility decreases by I unit as the distance to the library increases by 100 meters. Use the distance markers (the numbers) to indicate where the library should go according to the following aggregation methods: a b cde fg hi 012 34 5 67 8 9 10 11 12 (a) A simple majority vote? (b) A Rawlsian planner? (c) A standard utilitarian function?
C. How would you calculate: (1) the total amount of subsidy incurred by the government to socially efficient allocate?
1. Your health club offers you "free" parking and unlimited use of its facilities seven days a week if you buy an annual membership for $3,650, to be paid at the time the membership is taken out. Otherwise, you buy daily passes for $10 per day for the use of the facilities, plus pay for your parking. Is your parking truly "free" if you buy the annual membership? Explain.
Answer yes or no whether each situation will suffer from a free-rider problem.
Which of the following are examples of Pareto-efficient changes? Explain your answers. The Hooterville Police Department implements cost-saving programs without having to sacrifice the quality of their services. O A. Not Pareto efficient, because service quality does not increase with the cost-saving programs. O B. Not Pareto efficient, because services provided by a government agency are public goods. OC. Pareto efficient, because services are provided at a lower cost regardless of the quality of the service. O D. Pareto efficient, because services are provided at a lower cost without making any members of society worse off.
Suppose the president is attempting to decide whether the federal government should spend more on research to find a cure for heart disease. What is the opportunity cost of spending more money to find a cure for heart disease? O A. The total explicit cost of the research to cure heart disease. OB. The reduction in funding for research to cure other diseases. O C. The monetary value of a human life. O D. The cost of the Medicare/Medicaid program. O E. The reduction in future health-related costs of heart disease. How should policymakers determine the amount of money that should be allocated for research curing heart disease? They should base their decision on O A. the number of people who have heart disease compared to the number of people who have other diseases. O B. whether the last dollar devoted to research on heart disease results in more benefit than the last dollar spent on research for curing other diseases. O C. the value of the total benefit of research on curing other…