Author Question: The free-rider problem of public goods refers to a. individuals' refusal to pay taxes. b. ... (Read 181 times)

Yi-Chen · **on:** Jul 1, 2018

The free-rider problem of public goods refers to
a. individuals' refusal to pay taxes.
b. individuals' attempts to hide their preferences for collective goods and to avoid paying for them.
c. individuals' overuse of collective goods.
d. the inelasticity of individuals' demands for public goods.

Question 2

Efficient production of a public good requires
a. that individuals pay for such goods according to benefits received.
b. that each individual's MRS be equal to the RPT of public goods for private goods.
c. that the sum of individuals' MRSs be equal to the RPT of public goods for private goods.
d. that governments produce at the low point of the average cost curve for the public good.