Answer the following statements true (T) or false (F)

1. The free-rider problem makes a good highly profitable for a private firm to provide.
2. The free-rider problem refers to the local government's problem of finding funds to subsidize public transportation.
3. Rivalry means that when one person buys and consumes a product, it is not available for purchase and consumption by another person.
4. The government receives all of the benefits associated with the production of a public good.


1. FALSE
2. FALSE
3. TRUE
4. FALSE

Economics

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