Which of the following statements is correct? A. The division between public goods and common resources is clear-cut. B. The free-rider problem prevents governments from supplying public goods. C. Environmental degradation is an example of a free rider problem.. D. Some goods, such as lighthouses, may be either private or public goods. Solution The following statement is correct: A: The division between public goods and common resources is clear cut. Because Public goods are neither excludable nor rival. Examples include national defense, knowledge, uncongested nontoll roads, and so on. Whereas, Common resources are rival but not excludable. Examples include fish in the ocean, the environment, congested nontoll roads, and so on..