Which of the following is true?
A)The government may be able to overcome the free rider problem with public goods by providing the public goods and imposing taxes to pay for them.
B)The nature of public goods is such that the government cannot accurately assess the benefits and costs of those affected.
C)National defense and flood control are illustrations of public goods.
D)Just as in the case of external benefits, public goods tend to be underprovided by the private sector.
E)All of the above are true.

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, leading to the free rider problem, which the government can address by providing these goods and funding them through taxes. National defense and flood control are classic examples of public goods. The private sector often underprovides public goods due to the inability to exclude non-payers, similar to external benefits.

Which of the Following Is True