Because of the free-rider problem,
A)private markets tend to undersupply public goods.
B)the federal government spends too many resources on national defense and not enough resources on medical research.
C)firework displays provided by private markets have become increasingly popular.
D)poverty can easily be eliminated through private charity.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can benefit from a good or service without paying for it, leading to underproduction or undersupply by private markets, especially in the case of public goods that are non-excludable and non-rivalrous.

Because of the Free-Rider Problem