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Question 7 The South African government provides public goods since: a. private firms pollute in the absence of regulation. b. governments are as inefficient as firms at producing private goods. c. private firms overproduce socially desirable goods and services. d. free-rider phenomenon leads to underproduction by private firms. Question 8 The "tragedy of the commons" refers to . . . a. a scenario characterised by overconsumption of a common resource occurring when users are not restricted in their ability to consume efficiently b. the capacity of higher income groups to fund education. c. the perception of business leaders for corruption d. inability of government to regulate monopoly