Which of the following statements is correct?
A) It is paradoxical that people can be made better off by requiring them to do something that they would choose to do voluntarily.
B) It is paradoxical that people cannot be made better off by requiring them to do something that they would choose to do voluntarily.
C) Even though none contribute voluntarily, all would agree to be taxed as long as everyone else is also taxed.
D) Even though everyone contributes voluntarily, no one would agree to be taxed if everyone else is not taxed.

Question

Quizplus · Accepted Answer

This statement reflects the concept of collective action problems, where individuals may not voluntarily contribute to a public good, but would agree to mandatory contributions (taxes) if everyone else is also required to contribute.

Which of the Following Statements Is Correct