The government provides national defense because free riders make it difficult for private markets to supply the socially desirable amount.

Question

Quizplus · Accepted Answer

Free riding occurs when individuals can benefit from a good or service without paying for it. In the case of national defense, it would be difficult for private markets to provide the socially desirable amount because free riders could still receive the benefits of defense without paying for it. Therefore, the government intervenes to ensure that national defense is provided.

The Government Provides National Defense Because Free Riders Make It