Public schools, parks, libraries, and roads are paid for largely through tax revenue because
A)society finds them so valuable that citizens are happy to pay for their full cost.
B)these goods create a free-rider problem.
C)if they were funded privately, too many of these goods would be produced.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

These goods create a free-rider problem, as individuals may not be willing to pay for them individually, but still benefit from their use. Therefore, the government steps in to provide them through tax revenue. While society does find them valuable, the free-rider problem is the primary reason for their funding through taxation.

Public Schools, Parks, Libraries, and Roads Are Paid for Largely