Question 1
Because people can enjoy the benefits of public goods whether they pay for them or not, they are usually unwilling to pay for them. This is known as the
◦ drop-in-the-bucket problem.
◦ nonexcludable problem.
◦ nonrival problem.
◦ free-rider problem.
Question 2
The free-rider problem arises
◦ when people feel their contribution is so small relative to the total amount needed that it won't make a difference whether they contribute or not.
◦ when people realize they will still receive the benefits of a good whether they pay for it or not.
◦ whenever the government produces a good or service.
◦ whenever there is a surplus of the product in the market.
Pendulum Problem
Derivative application problem
Linear Problem
problem
Markets and Institutions Market Story Problem
Problem Solving