Multiple Choice
Which of the following is one of the implications of the Tragedy of the Commons?
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8. The Types of Goods
The Free Rider Problem and the Tragedy of the Commons
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Which of the following might help to solve a free-rider problem?
A
Relying solely on voluntary contributions
B
Imposing a tax to fund the public good
C
Ignoring the provision of the public good
D
Allowing unrestricted access to the resource
Verified step by step guidance1
Understand the free-rider problem: it occurs when individuals can benefit from a good without paying for it, leading to under-provision of that good, especially in the case of public goods.
Recognize that relying solely on voluntary contributions often fails because individuals have an incentive to free-ride, expecting others to pay while they enjoy the benefits for free.
Consider that ignoring the provision of the public good means no solution is attempted, so the free-rider problem remains unresolved.
Allowing unrestricted access to the resource typically exacerbates the free-rider problem because it encourages more people to use the good without contributing to its cost.
Imposing a tax to fund the public good is a common solution because it forces everyone to contribute, ensuring the good is financed and reducing the incentive to free-ride.
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