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Assume That Each Day Ten Thousand Children Watch Sesame Street

Question 93

Multiple Choice

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.

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