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) windows

Question

Quizplus · Accepted Answer

Lighthouses are a classic example of a public good because they provide non-excludable and non-rival benefits. This means that once a lighthouse is built, it is impossible to exclude anyone from using its light to navigate, and one person’s use of the lighthouse doesn't diminish another's ability to use it. This leads to the free-rider problem, where people can benefit from the lighthouse without contributing to its maintenance. The government can overcome this problem by providing lighthouses and funding their maintenance through tax dollars.

To Avoid the Free-Rider Problem, Which of the Following Goods