The free-rider problem plagues public goods because
A) public goods are not produced by profit-maximizing firms and hence can be produced only at a loss to society.
B) once public goods are produced it is not possible to exclude anyone from consuming these goods.
C) the government can refuse to serve a citizen.
D) the public doesn't care about public goods.

Question

Quizplus · Accepted Answer

The free-rider problem arises in public goods because once these goods are produced, it is impossible to exclude anyone from using them. This means that individuals can consume the benefits of public goods without contributing to their production. As a result, people have less incentive to pay for public goods and may free-ride on the contributions of others, leading to underprovision of public goods. The other options are not relevant to the problem of free-riding in public goods.

The Free-Rider Problem Plagues Public Goods Because