The concept that Mr. Jones is going to enjoy the benefits of police protection even though he no longer pays taxes is called
A) the free-rider problem.
B) the negative externality principle.
C) the principle of rival consumption.
D) the principle of anti-trust.
Question 2
Refer to the above figure. A shortage occurs if the government imposes
A) a price floor at 60.
B) a price floor at 20.
C) a price ceiling at 60.
D) a price ceiling at 20.
