📚 Learning Guide
Public Goods and Free Rider Problem
medium

Arrange the following steps in the process of addressing the free rider problem related to public goods:

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Identify the public good and its benefits

B

Assess the potential for a free rider problem

C

Implement government intervention or funding

D

Measure the effectiveness of the intervention

Understanding the Answer

Let's break down why this is correct

Answer

The free rider problem occurs when people benefit from a resource or service without contributing to its cost, which is common with public goods like clean air or national defense. To address this, the first step is to identify the public good and understand its benefits to everyone. Next, the government or a community group can step in to provide the good, ensuring that everyone has access. For example, if a new park is created, the community can fund it through taxes so that everyone can enjoy it without anyone freeloading. Finally, it's important to promote awareness and encourage participation, so that people recognize the value of contributing to the maintenance and improvement of public goods.

Detailed Explanation

First, we need to know what the public good is and how it helps everyone. Other options are incorrect because Thinking about the free rider problem too early can lead to confusion; Jumping to solutions without understanding the good can waste resources.

Key Concepts

Public Goods
Free Rider Problem
Government Intervention
Topic

Public Goods and Free Rider Problem

Difficulty

medium level question

Cognitive Level

understand

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