1. For each of the following goods, explain whether there is a free-rider problem. If there is no such problem, how is it avoided?

• Fire protection

• A July 4th fireworks display

• Interstate 80 in rural Wyoming

2. What quantity of spraying would a private control program provide? What is the efficient quantity of spraying? In a single-issue election on the quantity of spraying, what quantity would the winner of the election provide?

3. Suppose that the government sets up a Department of Mosquito Control and appoints a bureaucrat to run it. Would the department most likely underprovide, overprovide, or provide the efficient quantity of spraying?

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TABLE 1 Quantity (square miles sprayed per day) 012345 Marginal social cost Marginal social benefit (dollars per day) 0 1,000 2,000 3,000 4,000 5,000 6,000 5,000 4,000 3,000 2,000 1,000