Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A lighthouse providing navigation assistance to all ships without charging fees.
B
A restaurant offering takeout meals that must be paid for in advance.
C
A private security service that only protects paying customers.
D
A subscription-based streaming service that has exclusive content.
Understanding the Answer
Let's break down why this is correct
Answer
A public good is something that everyone can use without reducing its availability to others, like clean air or national defense. The free rider problem happens when people benefit from a public good without paying for it, which can lead to underfunding or depletion of that good. For example, if a community builds a park, everyone can enjoy it, but some people might choose not to contribute to its maintenance, hoping others will pay instead. This can result in less money for upkeep, making the park less enjoyable for everyone. Therefore, public goods require cooperation and funding from the whole community to ensure they remain available and in good condition for everyone.
Detailed Explanation
A lighthouse helps all ships find their way without charging them. Other options are incorrect because A restaurant requires payment for meals; A private security service only protects those who pay.
Key Concepts
Public Goods
Free Rider Problem
Topic
Public Goods and Free Rider Problem
Difficulty
easy level question
Cognitive Level
understand
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