Question

Suggest and explain how to overcome the free rider problems of national defence?

Answer 1

Free rider problem occur when despite of not contributing, some people are able to use public services and goods because other people are duly paying theri share.

Free rider on national defence is very common. One solution to solve this problem can be :

• Government imposing tax: government can measure the cost of national defence and then divide it equally among ghr population of the country. For example, UK government measured the cost of national defence to be around £ 31 billion. After analyzing the cost, the government distributed among the people of the country in the form of taxes. In this way, taxes increased and each and evey individual is now contributing to the national defence in the form of paying taxes and problem of free rider will be solved.