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Principles of Microeconomics, Third Edition
John B. Taylor, Stanford University
Internet Exercises
Chapter 15: Public Goods, Externalities, and Government Behavior


Should Public Broadcasting Be Subsidized?

Questions:

Read the article on "The struggle over federal aid since 1995."

  1. Are radio signals a public good? Explain.
  2. In the absence of subsidies, is it likely that voluntary contributions will provide an optimal level of funding for public broadcasting? Why or why not? Does the free-rider problem apply here?


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