Which one of the following is NOT a characteristic of public goods?

a.They can be used by increasing numbers of people at no additional cost.

b.They are indivisible.

c.They are subject to the principle of rival consumption.

d.It is difficult to charge people on the basis of how much they use.

Public goods are not likely to be provided by the private sector because

a.no one can be excluded from the consumption of the good

b.the exclusion principle does not apply to public goods.

c.the production of the good creates negative externalities.

d.the consumption of the good creates negative externalities.

The free-rider problem is encountered when

a.all individuals are willing to pay for what they consume.

b.all individuals who consume a public good pay for it

c.someone benefits from the consumption of a good without paying his or her full share.

d.all goods consumed and produced are private goods.