In order to avoid the free-rider problem, which of the following goods is best provided by the government and paid for with tax dollars?
A) Automobiles.
B) Lighthouses.
C) Bread.
D) Prescription drugs.
E) Windows.

Question

Quizplus · Accepted Answer

Lighthouses are a classic example of a public good that requires government provision as they are non-excludable, meaning that it is impossible to prevent people from using the service, regardless of whether they pay for it or not. Due to this, individuals may choose to free-ride and not pay for the lighthouse, but still benefit from it. The government can use tax dollars to ensure the provision of lighthouses for all to use.

In Order to Avoid the Free-Rider Problem, Which of the Following