Individuals Want Nonexcludable Public Good X,but the Market Does Not

question 46

Multiple Choice

Individuals want nonexcludable public good X,but the market does not provide it because of the free rider problem.Government overcomes the free rider problem by ______________ individuals and then either producing good X itself or paying someone to produce it.

• A) forcing individuals to work longer hours
• B) taxing
• C) surveying
• D) subsidizing
• E) none of the above

Recognize the government's role in promoting competition and managing natural monopolies.

Analyze the effects of taxation on activities that generate external benefits or costs.

Identify the fundamental roles of government in safeguarding private property and enforcing contracts.

Understand the production and overproduction of external benefits in a free market system.

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.

Pons

A structure in the brainstem involved in regulating vital functions, such as breathing, as well as roles in sleep and sensory processing.

Human Bladders

Organ in the human body that stores urine before it is excreted.

Laboratory

A controlled environment designed for scientific research, experiments, measurement, and data analysis.