A charity that used to make an appeal to people's sense of civic or moral responsibility, but no longer does, is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.

A. reduce; smaller
B. reduce; larger
C. increase; smaller
D. increase; larger

Answer: C

Economics

You might also like to view...

When a free market for a good reaches equilibrium, anyone who is willing and able to sell at the market price can sell the good

a. True b. False Indicate whether the statement is true or false

Economics

In countries such as El Salvador or Ghana, tax revenue is extremely limited due to the lack of an adequate tax-collection agency. These countries most likely will issue bonds and sell them to the central bank in order to cover government expenditures. Thus, the lack of:

A. well-developed bond markets may lead these economies to inflation and poor economic performance. B. a banking system may lead these economies to inflation and poor economic performance. C. government intervention may lead these economies to inflation and poor economic performance. D. property rights and laws may lead these economies to inflation and poor economic performance.

Economics