ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The free rider problem can be overcome through measures that ensure the users of a public good pay for it. Such measures include government actions, social pressures, and collecting payments-in specific situations where markets have discovered a way to do so.

Detailed explanation-2: -It usually falls upon the government to provide these goods, such as national defense or transportation infrastructure. These public goods can avoid the free rider problem because technically you are paying the government to provide these services-through taxes.

Detailed explanation-3: -Pure public goods are not normally provided by the private sector because they would be unable to supply them for a profit. It is up to the government to decide what output of public goods is appropriate for society. To do this, it must estimate the social benefits from making public goods available.

Detailed explanation-4: -The correct option is (a) The production of public goods is subject to the free-rider problem. Public goods are non-excludable.