Because of the free-rider problem, government is looked upon to provide public goods through the use of tax financing.

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 of that good. Governments address this by funding public goods through taxation, ensuring their provision despite the free-rider issue.

Because of the Free-Rider Problem, Government Is Looked Upon to Provide