. We add the demands of private goods horizontally but add the demands of public goods vertically when determining the associated marginal benefit to society. Why do we do this, and why are the procedures different for public and private goods . Assume that the citizens of Balaland used to pave 120 miles of roadways per year. After the government of Balaland began paving 100 miles of roadways per year itself, the citizens cut back their paving to 30 miles per year, for a total number of roadway miles paved per year of only 130 miles. What might be happening here? Let's say that Zorroland is a country that has a large number of people who are alike in every way. Boppoland has the same number of people as Zorroland, with the same average income as Zorroland, but the distribution of incomes is wider. Why might Boppoland have a higher level of public good provision than Zorroland? Suppose that to determine the right amount of a certain public good to provide, the government of Wakanda decides to survey its residents about how much they value the good. It will then finance the public good provision by taxes on residents. Describe a tax system that would lead residents to underreport their valuations. Describe an alternative system that could lead residents to overreport their valuations. . Thinking about the rival and excludable properties of public goods, explain to what degree is radio broadcasting a public good? To what degree is a highway a public good? . Economists often think of the public good provision problem as an externality problem? Explain why this would make sense