Government can overcome the free rider problem by taxing individuals and then using the tax proceeds to provide the nonexcludable public good itself.

Question

Quizplus · Accepted Answer

The government can address the free rider problem, which occurs when individuals cannot be excluded from benefiting from a good and thus may have little incentive to pay for its provision, by imposing taxes on individuals and using the collected funds to provide the nonexcludable public good for everyone, ensuring its availability without direct payment from users.

Government Can Overcome the Free Rider Problem by Taxing Individuals