Author Question: In order to avoid the free-rider problem, which of the following goods is best provided by the ... (Read 160 times)

WWatsford · **on:** Jun 30, 2018

In order to avoid the free-rider problem, which of the following goods is best provided by the government and paid for with tax dollars?
a. Automobiles.
b. Lighthouses.
c. Bread.
d. Prescription drugs.
e. Windows.

Question 2

If the free market is called upon to provide public goods, then:
a. there will more goods provided than is optimal.
b. there will be fewer goods provided than is optimal.
c. the market will provide the optimal number of goods.
d. the market price will be correct, but the optimal amount of output will not be produced.
e. the firms will earn excess profit.