Assume that each day ten thousand children watch Sesame Street on public television and that watching Sesame Street generates a benefit of $100 per child per year. Once a year, public television hold a pledge drive asking viewers to make voluntary contributions in order to keep the programming available to everyone. If public television stations collect less than $100 per child during the pledge drive, then this is evidence:
A. that parents do not care about their children.
B. that head taxes are regressive.
C. that the government should not subsidize public television.
D. of the free-rider problem.
Answer: D
Economics
You might also like to view...
Unemployment compensation is an example of:
A) non-discretionary expenditures. B) discretionary expenditures. C) taxes. D) none of the above.
Economics
Which of the following macroeconomic variables would you exclude from an index of leading economic indicators?
A) Money supply B) Industrial production C) Inventory investment D) Residential investment
Economics