Asked by
Ja’Tavia Mills
on Nov 17, 2024
Verified
Because of the free-rider problem,
A) private markets tend to undersupply public goods.
B) the federal government spends too many resources on national defense and not enough resources on medical research.
C) firework displays provided by private markets have become increasingly popular.
D) poverty can easily be eliminated through private charity.
Free-Rider Problem
A situation where individuals consume a public good without contributing to its cost, undermining the provision of that good.
Public Goods
are commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.
- Master the fundamentals of externalities and public goods, including the complications arising from the presence of free riders.
- Recognize free riders and their effects on the provision of public goods and common resources.
Verified Answer
RS
Learning Objectives
- Master the fundamentals of externalities and public goods, including the complications arising from the presence of free riders.
- Recognize free riders and their effects on the provision of public goods and common resources.