Public goods are characterized by the free-rider problem because
A) no one can be excluded from the benefits of public goods once they are produced.
B) public goods are usually things that people really do not want to consume.
C) public goods are characterized by the principle of rival consumption.
D) public goods can easily be subdivided into small units.

Question

Quizplus · Accepted Answer

Public goods are non-excludable, meaning that once they are provided, no one can be excluded from enjoying their benefits. This creates a free-rider problem, as individuals can benefit from the public good without contributing to its provision.

Public Goods Are Characterized by the Free-Rider Problem Because