If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market,the good must be a(n):
A)private good.
B)public good.
C)illegal good
D)artificially scarce good.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can consume a good without paying for it, which leads to an inefficiently low level of production in the private market. Public goods are non-excludable and non-rivalrous, which makes them susceptible to the free-rider problem. Therefore, the good must be a public good.

If a Good Is Subject to the Free-Rider Problem and an Inefficiently