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'Free Rider' effects impact 'Private Goods' more than 'Public Goods'. A True B False

'Free Rider' effects impact 'Private Goods' more than 'Public Goods'. A True B False

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Answer #1

This statement is false.

The problem of free rider affects public goods more than the private goods. This is because the public goods are non-excludable in nature. Nobody can be excluded from having access to the public good. So, free rider also enjoy the benefits of a public good without paying for it. On the other hand, the private goods are excludable in nature. It is possible to exclude anyone from having access to the private good. So, the free rider problem is not there. Therefore, this statement is false.

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