42) A charity that used to make an appeal to peoples’ 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 43) A charity that used to offer contributors private goods such as coffee mugs books or magazine subscriptions but no longer does is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good. A) increase; smaller B) increase; larger C) reduce; smaller D) reduce; larger 44) A charity that used to arrange matching charitable contributions 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 45) Public Broadcasting in its fund drives often appeals to viewers by saying “without you there will be no Big Bird.” This is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good. A) increase; smaller B) increase; larger C) reduce; smaller D) reduce; larger 46) Public Broadcasting in its fund drives often arranges for a corporation to match donations made by its employees. This 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 47) Public Broadcasting reads the names of local contributors on the air. This is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good. A) increase; smaller B) increase; larger C) reduce; smaller D) reduce; larger 48) When private goods have external benefits A) marginal social cost is greater than marginal private cost. B) marginal privates cost is greater than marginal social cost. C) marginal social benefit is greater than marginal private benefit. D) marginal private benefit is greater than marginal social benefit. 49) The forces of supply and demand will provide a quantity that is A) less than the efficient quantity if a good generates external benefits. B) more than the efficient quantity if a good generates external benefits. C) exactly the efficient quantity if a good generates external benefits. D) either more than or less than the efficient quantity if a good generates external benefits. It is impossible to know whether it will be too much or too little without more information. 50) If a private good generates external benefits A) the social benefit will be greater than the private benefit. B) the social benefit will equal the private benefit. C) the social benefit will equal the private benefit minus the external benefit. D) the external benefit will equal the private benefit plus the social benefit. Recall the Application about towns that built clock towers to help their citizens keep track of time to answer the following question(s). 51) Recall the Application. A town tried to prevent free riding by A) not putting a clock face on the tower in the direction of those the one who refused to contribute to building the clock tower. B) setting the time wrong on the face of the tower in the direction of those who refused to contribute to building the clock tower. C) making it illegal for those who did not contribute to the clock tower to use it. D) taxing those who would not contribute to the clock tower project.
