Think of an example of a free rider problem in your hometown. Can you think of a way for your local government to overcome this problem?
Answer to relevant QuestionsTo determine the right amount of public good to provide, the government of West Essex decides to survey its residents about how much they value the good. It will then finance the public good provision by taxes on residents. ...The town of Springfield has two residents: Homer and Bart. The town currently funds its fire department solely from the individual contributions of these residents. Each of the two residents has a utility function over ...Consider the Deacon and Sonstelie (1985) approach to valuing time described in the text on p. 216. Imagine that two cars are equivalent to one another in every way (such as gas mileage) except for gas tank size, and car ...You are trying to decide where to go on vacation. In country A, your risk of death is 1in 10,000, and you’d pay $6,000 to go on that vacation. In country B, your risk of deaths 1 in 20,000, and you’d pay $9,000 to go on ...A problem with the median voter outcome is that it does not take into account intensity of preferences. Suppose that the government decided to give multiple votes to people with strong preferences, pro or con. Does this ...
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