It is almost unheard of to not have free riders taking advantage of certain

It is almost unheard of to not have free riders

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organizations are nearly inevitable. It is almost unheard of to not have free-riders taking advantage of certain resources that groups provide. It is the individuals best interest to be a free- rider. The free-rider problem leads to under-provision of a good and thus causes market failure. Public goods are non-excludable and therefore it is difficult to charge people for benefiting once a product is available. This is not an issue that can only be seen in a government; it is something that can affect any group of people that is trying to conserve or maintain a resource. Public goods are undersupplied without government involvement because the quantity of public goods provided by a free market is less than the amount used by general welfare. The competitive environment between the business would cause the disregard of the public to
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Khatri 3 increase their net income. Therefore, it may be appropriate for the government to provide public goods. The role of the government is to figure out what is the efficient quantity to produce. Then the government should set taxes that everyone has to pay. By collecting these taxes the government provides us with the public goods and also overcoming the free rider problem. In my opinion clean air, water and environment are the undersupplied goods in the United States today. In 1787, 12 of the 13 states came together and there was an agreement among the delegates to bringing changes in the Article of Confederation, which led to issues that required political compromises. They wanted to have a stronger central government, on that can get things done ensure the states play well together, raise armies, raise taxes. They did not want a central government that is too strong, as the just escaped the monarchy. They don't want to
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Khatri 4 recreate monarchy in the United States. They were looking for balance in the government which would not promote tyranny. Delegates were supposed to be revising the Article of Confederation, but some people had, in secret being considering throwing out the Article of Confederation and starting a new. The problem of small states versus large states. William T. Bianco and David T. Canon state that the Virginia delegates suggested a plan for the legislature, it was the lawmaking body that would have two houses and the idea was that there would be a lower house, which would be directly elected. Everyone would vote for the representatives, but the number of representatives that each would get would be decided by their population. Now, Virginia was the largest state by population and this plan would have worked out pretty well for them because they would have gotten most representation. Small, states would have few representatives. The plan also wanted to have an upper house. Which would be appointed by the state legislatures and again, the number of representation would be determined by the number of population. Small states were not happy with the Virginia Plan. So, they came up with a different plan, called the New Jersey plan. They wanted an equal voice in the legislation. The New Jersey plan gave one vote to each
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  • Spring '12
  • cynthiasloan

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