Author Question: The possibility of a free rider exists: a. in the presence of external costs and benefits. b. only ... (Read 82 times)

joblessjake · **on:** Jun 30, 2018

The possibility of a free rider exists:
a. in the presence of external costs and benefits.
b. only in the presence of external costs.
c. only in the presence of external benefits.
d. only in the presence of internal costs.
e. only in the presence of a government-produced good.

Question 2

Which of the following is not a solution to the problem of negative externalities due to pollution?
a. Create private property rights.
b. Levy pollution taxes.
c. Create obligatory controls.
d. Reward the production of these products through subsidies.
e. Establish strict limits on the amount of pollution allowed.