One way the government provides public goods is by ________________, which helps to spread the cost around and eliminates the free-rider problem.
a. supporting research and development
b. charging per-use fees, such as tolls
c. taxation
d. exclusionary participation
c. taxation
If people come together through the political process and agree to pay taxes and make group decisions about the quantity of public goods, they can defeat the free-rider problem by requiring, through the law, that everyone contributes.
You might also like to view...
If the current period has a CPI of 143, then the amount of inflation since the base period is
A) 143 percent. B) 157 percent. C) 57 percent. D) 43 percent. E) unknown without knowing the base period's CPI.
If the Fed engages in quantitative easing, it has likely
A) started paying interest on required reserves. B) increased the federal funds rate by selling private securities. C) increased the discount rate to prevent inflation. D) decreased the discount rate by selling its own securities. E) decreased the federal funds rate to almost zero by buying large sums of securities.