If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market, the good must be a(n):
A) private good.
B) public good.
C) common resource.
D) artificially scarce good.

Question

Quizplus · Accepted Answer

A public good is a good that is non-excludable and non-rivalrous. This means that it is impossible to prevent people from consuming the good, and that one person's consumption of the good does not reduce the amount available for others. As a result, public goods are often underprovided by the private market, because producers cannot charge a price that covers their costs.

If a Good Is Subject to the Free-Rider Problem and an Inefficiently