📚 Learning Guide
Public Goods and Free Rider Problem
easy

Public goods are to government provision as free riders are to which of the following?

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Learning Path
Learning Path

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

Choose the Best Answer

A

Resource allocation

B

Market competition

C

Individual contribution

D

Product pricing

Understanding the Answer

Let's break down why this is correct

Answer

Public goods are services or resources that everyone can use without paying for them, like clean air or national defense. Because these goods are available to everyone, some people might take advantage of them without contributing, which is known as being a free rider. In this situation, free riders can be compared to those who benefit from public goods without helping to fund or support them. For example, if a community builds a park funded by taxes, those who do not pay taxes but still use the park are considered free riders. This creates a challenge for governments, as they need to find ways to encourage everyone to contribute fairly to support public goods.

Detailed Explanation

Free riders benefit from public goods without paying for them. Other options are incorrect because Some might think resource allocation is about how goods are shared; People may confuse market competition with free riders.

Key Concepts

Public Goods
Free Rider Problem
Government Intervention
Topic

Public Goods and Free Rider Problem

Difficulty

easy level question

Cognitive Level

understand

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