The free-rider problem is that: free public transportation is overcrowded. people will not voluntarily pay for something that they can obtain without paying. government supplies goods at no charge to people who can afford to pay for them. public goods often create large external costs.

The free-rider problem is that: free public transportation is overcrowded. people will not voluntarily pay for something that they can obtain without paying. government supplies goods at no charge to people who can afford to pay for them. public goods often create large external costs.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section11.2: Public Goods

Problem 2QQ

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Question

The free-rider problem is that:
1. free public transportation is overcrowded.
2. people will not voluntarily pay for something that they can obtain without paying.
3. government supplies goods at no charge to people who can afford to pay for them.
4. public goods often create large external costs.

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