If people prefer to live in a society without poverty,then fighting poverty can be thought of as a public good.Why can't the private sector provide sufficient "poverty reduction"?
A)Because people who do not donate to private charities can "free ride" off those who do.
B)The private marketplace can provide a socially optimal quantity of these programs with no government interference.
C)Because the Food Stamp program is more efficient than private food pantries run by charities.
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

The concept of "free riding" exists in private charity as well, as people who do not donate can still benefit from the poverty reduction provided by those who do donate. This means that private charity alone may not be sufficient to provide the level of poverty reduction desired by society.

If People Prefer to Live in a Society Without Poverty,then