In an Effort to Overcome the Free-Rider Problem,noneconomic Groups Have

question 29

Multiple Choice

In an effort to overcome the free-rider problem,noneconomic groups have

• A)deliberately restricted the size of their membership.
• B)joined up with economic groups.
• C)convinced government to limit the distribution of public goods to those who have contributed to the group's efforts.
• D)used Internet resources and computer-assisted mailing lists to target potential donors.
• E)adopted taxes for nonmembers.

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Definitions:

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities, intended to correct the market outcome by internalizing the costs of the externality.

Marginal Social Cost

The complete expense incurred by society to produce an extra unit of a good or service, encompassing both individual costs and external impacts.

Marginal Social Benefit

Marginal social benefit is the additional gain to society as a whole from an additional unit of a good or service.

Socially Optimal

Refers to a situation where goods or services are produced and consumed at a level that maximizes overall social welfare.