It is difficult to get people to pay for public goods voluntarily because these goods are:
A) excludable, and therefore markets tend to overprovide them.
B) excludable, and therefore markets tend to underprovide them.
C) nonexcludable, and therefore markets tend to overprovide them.
D) nonexcludable, and therefore markets tend to underprovide them.

Question

Quizplus · Accepted Answer

Nonexcludable goods are open to use by anyone, regardless of whether they contributed to their provision, and thus people have little incentive to pay for them. Markets tend to underprovide such goods because individuals can "free ride" on the efforts of others.

It Is Difficult to Get People to Pay for Public