b. Are the externalities associated

b. Are the externalities associated with common
resources generally positive or negative? Use
examples in your answer. Is the free-market
use of common resources generally greater or
less than the efficient use?
3. Charlie loves watching Teletubbieson his local
public TV station, but he never sends any
money to support the station during its fundraising drives.
a. What name do economists have for people
like Charlie?
b. How can the government solve the problem
caused by people like Charlie?
c. Can you think of ways the private market can
solve this problem? How does the existence
of cable TV alter the situation?
4. Wireless, high-speed Internet is provided for
free in the airport of the city of Communityville.
a. At first, only a few people use the service.
What type of a good is this and why?
b. Eventually, as more people find out about
the service and start using it, the speed of the
connection begins to fall. Now what type of a
good is the wireless Internet service?
c. What problem might result and why? What
is one possible way to correct this problem?
5. Four roommates are planning to spend the
weekend in their dorm room watching old
movies, and they are debating how many to
watch.