Which of the following statements is not correct?
A) Environmental degradation is an example of the Tragedy of the Commons.
B) Cost-benefit analysis is an important tool that economists use to evaluate the benefits of providing a public good.
C) Some goods, such as lighthouses, may be either private or public goods.
D) The free-rider problem prevents governments from supplying public goods.

Question

Quizplus · Accepted Answer

The free-rider problem can make it difficult for governments to incentivize individuals to contribute to the provision of public goods, but it does not prevent them from supplying these goods altogether. Governments can still provide public goods through various means, such as taxes, subsidies, or regulation.

Which of the Following Statements Is Not Correct