1. Fire protection is a public good; a July 4th fireworks display is a public good. In...

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1. Fire protection is a public good; a July 4th fireworks display is a public good. In both cases, the free-rider problem is avoided by public provision and financing through taxes. Interstate 80 in rural Wyoming is a public good. The public good creates a free-rider problem that is avoided because governments collect various taxes via the tax on gas and the vehicle registration fee.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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