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Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126

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BuyFindarrow_forward

Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126
Chapter 11.2, Problem 2QQ
Textbook Problem
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What is the free rider problem? Why does the free-rider problem induce the government to provide public goods? • How should the government decide whether to provide a public good?

To determine
The problem of free-rider.

Explanation of Solution

The problem of free-rider happens when benefits of a commodity are received by the people but they do not pay for it.

Due to the problem of free-rider, an efficient quantity would not be produced by the private market on its own. This induces the government to provide public goods...

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