Problem I. True or False (20 points, Each 5 points) Please provide a brief, precise argument for each case. The argument can be in math, words, or graphs as long as it is reasonable.

1. Without the presence of uncertainty, Quantity approach is as good as price approach to solve the externality problem as long as quotas are tradable.

2. A painting by Monet is excludable but not rival.

3. Although education is a large element of federal spending, American students are not placed among the top countries in terms of grades in international tests.

4. Free rider would not be a problem if people had linear utility functions.