Question 34 Not ye answered Points out of 1 Remove flag (This question refers to

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Question 34 Not ye answered Points out of 1 Remove flag (This question refers to the MRU video 'A Deeper Look at Public Goods:J When it comes to a good like national defense, people have an incentive to Select one o a.try to free ride. O b. vote for greater quantities. O ewaste resources by excluding non-payers O d. pay for the good Question 35 Not yen anowered Paines ou of P Rag question Figure: Budget Constraint 2 Budget Constraint 2) Refer to the figure. A connsumer has $45 to spend on movie and music downloads per What is the price per movile and music download? Select one a.S3 per move download and Si per music download ?.s15 per movie download ad SOAS per mac download c $2.50 per movie download and $1.50 per music download d. $10 per movie download and s0.80 per music download 3 4

Explanation / Answer

Question 34) Correct option is a) try to free ride.

When it comes to a good like national defense people have an incentive to try to free ride. Public goods are goods that are consumed by everyone. Once a producer has provided a public good, everyone including nonpayers can obtain the benefit. Most people do not voluntarily pay for something they can obtain for free. These characteristics of public goods like national defense creates free rider problem.

Question 35) Correct option is a) $3 per movie download and $1 per music download.

If the consumer spends entire $45 on movie download, then he is able to do 15 movie downloads which means price per movie download is 45/15=3 and if the consumer spends entire $45 on music download, then he is able to do 45 music downloads which means price per music download is 45/45=1.

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