Assume that each day ten thousand children watch Sesame Street on public television and that watching Sesame Street generates a benefit of $100 per child per year. Once a year, public television hold a pledge drive asking viewers to make voluntary contributions in order to keep the programming available to everyone.
If public television stations collect less than $100 per child during the pledge drive, then this is evidence:
A) that the government should not subsidize public television.
B) that parents do not care about their children.
C) of the free-rider problem.
D) that head taxes are regressive.
Correct Answer:
Verified
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