Which of the following aspects of the free-rider problem is overcome by government financing of a public good?
A)The problem of overproduction
B)The external cost associated with production
C)The tendency of people to withhold payment
D)The high search cost associated with the consumption of the good

Question

Quizplus · Accepted Answer

The free-rider problem arises when individuals benefit from a public good without paying for it, leading to underproduction. Government financing of a public good overcomes the tendency of people to withhold payment, as everyone is required to pay taxes that go towards funding the public good. This ensures that the good is adequately funded and produced.

Which of the Following Aspects of the Free-Rider Problem Is