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OpenStudy (anonymous):
Explain what the free-rider problem is? How does this relate to the provision of public goods by the government?
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OpenStudy (anonymous):
Free rider problem involves taking advantage of (using) a good that you didn't help pay for. An example is a city firework display. You can watch the fireworks even if you don't help pay for them, thus everyone has an incentive to not PAY!!! This is the reason we see the government charge taxes so that they force people to pay for goods they would other wise want to "free ride" on.
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