Asked by Jessica Green on May 02, 2024

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Because people enjoy the benefits of public goods whether they pay for them or not, people are usually ________ to pay for them. This is known as the free-rider problem, and is intrinsic to ________ goods.

A) willing; private
B) willing; public
C) unwilling; private
D) unwilling; public

Free-rider Problem

A situation where individuals consume a good without paying for it, benefiting from the good or service without contributing to its cost.

Public Good

A good that is non-excludable and non-rivalrous, meaning that its use by one person does not reduce its availability to others and no one can be effectively excluded from using it.

  • Identify and explain the free-rider problem associated with public goods.
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AW
Avery WalterMay 06, 2024
Final Answer :
D
Explanation :
Public goods are non-excludable and non-rivalrous, meaning people cannot be easily excluded from using them and one person's use does not reduce availability for others. This leads to the free-rider problem, where individuals may benefit from goods without contributing to their cost, making people generally unwilling to pay for them voluntarily.