Why is it impractical to exclude non-payers from using a public good like a bridge?
Public Goods and Externalities

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Business, Social Studies
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11th Grade - University
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Hard
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7 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Because it would not reduce the benefits to any user
Because it would increase the cost of the bridge
Because it would cause traffic congestion
Because it is difficult to monitor who uses the bridge
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a common reason for political debate regarding public goods?
The efficiency of private companies
The alignment of tax spending with personal values
The cost of maintaining public goods
The environmental impact of public goods
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the free-rider problem?
When people pay more than their fair share for public goods
When public goods are underutilized
When people benefit from public goods without paying for them
When public goods are overfunded
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How might the free-rider problem affect public goods if taxes were not collected?
Public goods would lack funding and become unavailable
Public goods would be overfunded
Public goods would become more efficient
Public goods would be privatized
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an externality in economic terms?
A direct cost paid by consumers
A side effect that affects a third party
A benefit received by the government
A tax imposed on public goods
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a positive externality of building a bridge?
Increased traffic congestion
Disruption of local businesses
Creation of construction jobs
Increased air pollution
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why do some economists believe the private sector generates positive externalities more efficiently?
Because it focuses on public goods
Because it is less regulated
Because it operates at a lower cost to taxpayers
Because it has more resources
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