Multiple Choice

A country's government funds its national public television network through a mandatory annual license fee for every household with a television. A political group argues that since the broadcast signal is available to everyone with a TV regardless of whether they pay, the license fee is an unfair tax and should be abolished, proposing to fund the network through voluntary donations instead. From an economic perspective, what fundamental problem would the public television network most likely face if it were funded solely by voluntary donations?

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Updated 2025-09-28

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