To combat the undersupply of public goods,a solution is:
A)for the government to step in and provide it directly.
B)to place a quota on the consumption of the good.
C)to change social norms around consumption of the good.
D)All of these are effective ways to deal with the undersupply of public goods.

Question

Quizplus · Accepted Answer

The most effective way to combat undersupply of public goods is for the government to step in and provide it directly. Public goods are necessary for the community as a whole and are best provided by the government, as the private sector may not have an incentive to produce them due to the free-rider problem. By providing them directly, the government can ensure that all members of society have access to the public goods. Placing a quota on the consumption of the good or changing social norms around consumption may not be as effective as direct government provision.

To Combat the Undersupply of Public Goods,a Solution Is