You and your roommate have a stack of dirty dishes in the sink. Either of you would wash the dishes if the decision were up to you; however, neither will do it in the expectation (hope!) that the other will deal with the mess. Explain how this example illustrates the problem of public goods and free riding. OA. The dishes illustrate a public good because both you and your roommate have incentive to wait for the other person to wash the dishes. OB. The dishes are a public good but do not represent free riding because there is no cost from failing to wash them. OC. The possibility that the other person might do the dishes makes it seem that an optimal strategy is to simply leave the dishes. O D. Both A and C.

You and your roommate have a stack of dirty dishes in the sink. Either of you would wash the dishes if the decision were up to you; however, neither will do it in the expectation (hope!) that the other will deal with the mess. Explain how this example illustrates the problem of public goods and free riding. OA. The dishes illustrate a public good because both you and your roommate have incentive to wait for the other person to wash the dishes. OB. The dishes are a public good but do not represent free riding because there is no cost from failing to wash them. OC. The possibility that the other person might do the dishes makes it seem that an optimal strategy is to simply leave the dishes. O D. Both A and C.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5.. "Since a public good is enjoyed by all members of society, willingness to pay for the good will not diminish as the amount produced increases." Evaluate and use an example to support your answer. This statement is (correct incorrect). Public goods face (increasing, constant, diminishing ) returns like any other good. Consider the number of highways in a town, for example. Citizens of a town are very willing to pay for the first highway, as it produces large gains to the town. Successive highways produce (more and more, less and less ) willingness to pay because the citizens face lower and lower gains from the increased number of highways. In a town of, say 20,000, 15 highways (would, would not) produce much more benefit than just 2 or 3 highways because of ( increasing, constant, diminishing ) returns.
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12. Give four (4) economic activities that generate both positive and negative externalities?
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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