In the context of public goods, the free-rider problem leads to:
A. No role for government
B. Under-provision of public goods by the market
C. Efficient provision by private firms
D. Over-provision of public goods by the market
Answer: Option B
Solution (By JKSSB Mock Tests)
Because individuals can enjoy the benefits of a pure public good without paying, they have an incentive to free-ride, resulting in under-provision if left to the private market.
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