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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.

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Which of the following statements is correct A. The division betwee.pdf

  • 1. 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.