Which of the following statements is TRUE?
A) A forced rider is someone who helps pay for a public good but doesn't get any benefit from it.
B) Public schooling is a private good.
C) Public goods should be produced up to the point where consumer surplus equals producer surplus.
D) The government cannot produce private goods.

Question

Quizplus · Accepted Answer

A forced rider, also known as a free rider, is someone who benefits from a public good without contributing to its provision. Public schooling is a public good, not a private good, as it is both non-excludable and non-rivalrous, meaning that it cannot be denied to anyone and consumption by one person does not reduce its availability to others. Public goods should be produced up to the point where marginal social benefit equals marginal social cost, not where consumer surplus equals producer surplus. The government can produce private goods, but it is generally more efficient for the private sector to do so.

Which of the Following Statements Is TRUE