Question 1
You will still be able to listen to NPR (National Public Radio) whether or not you contribute to their fund-raising campaign, so you decide not to contribute. This is an example of the
◦ private good problem.
◦ free-rider problem.
◦ rival in consumption problem.
◦ drop-in-the-bucket problem.
Question 2
A national campaign is asking for contributions of $1.00 per citizen to fund the building of the September 11th memorial in New York City. The total cost of the memorial is estimated to be $260 million. You decide not to contribute, because your contribution would be small relative to the total that it won't make any difference whether you contribute or not. This is an example of the ________ problem.
◦ nonexcludable
◦ nonrival in consumption
◦ free-rider
◦ drop-in-the-bucket
Teresa Hubbard and Alexander Birchler, Detached Building.