The free-rider problem arises because
A) once provided, a public good is available to all regardless of whether they paid for it.
B) poor people cannot afford to contribute to public goods.
C) enforcement of tax laws is inadequate.
D) people disagree with how the government spends it s money.

Question

Quizplus · Accepted Answer

The free-rider problem arises because a public good is non-excludable, which means that once it is provided, it is available to all members of society regardless of whether they have paid for it. This creates an incentive for individuals to not contribute to the provision of the public good, since they can still benefit from it without incurring any costs.

The Free-Rider Problem Arises Because