Assuming That Everyone Prefers to Live in a Society Without

question 34

Multiple Choice

Assuming that everyone prefers to live in a society without poverty, which of the following statements are true of private anti-poverty programs?
(i) people who don't contribute still receive benefits from the general reduction in poverty
(ii) the socially optimal level of charitable donations is greater than those actually received, because of the free-rider problem
(iii) there is no individual incentive to contribute to private anti-poverty programs since the government is the sole supplier

• A)(i) and (ii)
• B)(i) and (iii)
• C)(ii) and (iii)
• D)(i), (ii) and (iii)