Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337368087
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 11.2, Problem 2QQ
To determine
The problem of free-rider.
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6. Explain why the free-rider problem is likely to happen when a
group must decide to provide a public good.
2. Why does the free-rider problem induce the government to provide public goods
1. explain four main roles of the government in solving the insufficiency of the market
2. What is the difference between a private good and a public good?
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- Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?arrow_forwardAssume that the marginal private costs of a film producing fuel-efficient can; is greater than the marginal social costs. Assume that the marginal private benefits of a firm producing fuel efficient cars are the same as the marginal social benefits. Discuss one wags.r that the government cans fly to increase production and sales of fuel efficient cars to the socially desirable amount. Hint: the government is flying to affect production through costs, net benefits.arrow_forwardGive typing answer with explanation and conclusion Why the market tends to fail when dealing with environmental issues? It is said many externalities in environmental economics have features that are similar to that of public goods. We know that the provision of some public goods such as lighthouse can be solved through the market rather effectively. What makes environmental goods such as clean air different from other public goods such as lighthouse? Why is it more difficult to solve the provision of clear air through the market?arrow_forward
- Question 6 1. Public goods have at least one of two characteristics. What are the two characteristics? a. nonrival; nonexcludability b. individual consumption; nonexcludability O d. individual consumption; excludabilityarrow_forward1. What characteristic of public goods makes it very difficult for private firms to provide (or provide the correct amount of) the public good? What "problem" does this characteristic lead to that generally results in the need for the government to provide the public good? Explain this "problem." 2. List 5 distinct examples of public goods.arrow_forwardBoth public good;; and common resources involve b. How can the government solve the problemexternalities. caused by people like Fredo?a. Arc t~ extemalities associated with public goodsgenerally positive or negative? Usc examples in your answer. Is the froe. market quantity of public goods generally greater or Less than the efficientquantity?b. Are the externalities a.;;sociated with commonresources generall)' positive or negative? Uscexamples in your answer. Is the free·market usc ofcommon resources generally g:reatc.r or less thanthe efficient use?arrow_forward
- Which of the following statement about public goods is FALSE? Question 21Answer a. Public goods are provided by the government b. All of the statement are true c. The environment is a public good d. Public goods are freely accessible e. Many people can simultaneously benefit from a public goodarrow_forward1. Two interesting public goods are radio and television signals. A. In the U.S., private markets have provided these public goods because a private good is associated with radio and television signals: advertising. Revenue from advertising makes it possible for private firms to provide the public goods-radio and television broadcasts. Explain why these are public goods.arrow_forward. What are the three problems facing a government trying to determine the optimal quantity of a public good? explain.arrow_forward
- 8) Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch. Here is their willingness to pay for each film: First film Second film Third film Fourth film Fifth film Jack $7 6 5 4 3 C. Kathy $5 4 3 2 1 John $3 2 1 0 0 a. Within the dorm room, is the showing of a movie a public good? Why or why not? If it costs $8 to rent a movie, how many movies should the roommates rent to maximize total surplus? b. If they choose the optimal number from part (b) and then split the cost of renting the movies equally, how much surplus does each person obtain from watching the movies? e. Nancy $2 1 0 0 0 Is there any way to split the cost to ensure that everyone benefits? What practical problems does this solution raise? d. Suppose they agree in advance to choose the efficient number and to split the cost of the movies equally. When Jack is asked his willingness to pay, will he have an incentive to tell the truth? If so, why? If…arrow_forwarddont use chatgpt i will 10 upvotearrow_forward2arrow_forward
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