environmental, and development eco-
that a once-dammed river is running wild SOURCE: The New York Times, Week in Review,
nomics at Ohio State University. "The
again--even if you never visit it? October 17,
carrera frames, 1999,
diesel lowky jeans, p. 5.
We can now return to our original example and respond to the town engi-
neer. The traffic light reduces the risk of fatality by 0.5 percent. Thus,
diesel jeans size chart, the ex-
pected benefit from having the traffic light is 0.005 $10 million,
clearance true religion jeans, or $50,
toughest p90x workout,000.
This estimate of the benefit well exceeds the cost of $10,000, so you should ap-
prove the project.
Q U I C K Q U I Z : What is the free-rider problem? N Why does the free-rider
problem induce the government to provide public goods? N How should the
government decide whether to provide a public good?