A free rider problem is created by private goods

Ad valorem taxation means

A) that only the value added by a service provider is taxed. B) that the tax rate is a percentage of the price paid for a product. C) a negative income tax. D) a progressive property tax imposed in some states.

At which of the following prices would both Jamaica and Norway gain from trade with each other?

a) 1 radio for 1 cooler b) 1 radio for 4 coolers c) 1 radio for 10 coolers d) Jamaica and Norway would both gain from trade at all of the above prices.