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(Solved): 1. The problem of free ride in the public policies is most likely to occur when it is a) A pri ...



1. The problem of “free ride” in the public policies is most likely to occur when it is a) A private goods with selective incentives b) A public good without selective incentives c) A public good with selective incentives d) A private good without selective incentives

2. The environmental Kuznets Curve says that as incomes rise, the pollution and other environmental degradation will first increase and then falls. The evidence shows which of the following has the inverted-U shape “ a) Emissions of greenhouse gases b) Sulfur dioxide and air c) Water pollution d) Industrial wastes

3. On the solution of global warming and economic development, it is more than likely that a) The higher the income in the country, the more difficult it will be able to absorb the costs b) The lower the income in the country, the more difficult it will be able to absorb the costs c) The more industrialized the country, the more difficult it will be able to absorb the costs d) The middle-income countries will have more difficult to absorb the costs

4. On the shares of tax burden on pollution tax, it is found that the consumers with a) More elastic the demand for the product will share more of the pollution taxes b) Less elastic the demand for the product will share more of the pollution taxes c) Unitary elastic demand for the product will share more of the pollution taxes d) Higher income will share more of the pollution taxes

5. The tragedy of common theory advocates that, at least for environment protection purpose, the ownership of property resources should be a) Owned and shared by the general public b) Privatized through public auctions c) Inherited by the descents of the original owners d) Exclusively used by the government only



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Solution :-(1)


The problem of "free ride" in public policies is most likely to occur when it is:


b) A public good without selective incentives

Free riding refers to the situation where individuals or groups benefit from a public good without contributing their fair share of the costs. Public goods are non-excludable, meaning that once they are provided, individuals cannot be easily excluded from benefiting. Without selective incentives, there is no mechanism to ensure that individuals who benefit from the public good contribute to its provision, leading to a free rider problem.


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