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Unformatted text preview: Difficult for private markets to provide because of the free-rider problem. Free rider problem: A person who receives the benefit of a good but avoids paying for it. National defense, knowledge through research, welfare If the benefit of a public good exceeds the cost of providing it, the government should provide the good and pay for it with a tax on people who benefit Cost-benefit analysis: A study that compares the cost and benefits of providing a public good.-Common resources-- Like public goods, common resources are not excludabe....
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This note was uploaded on 04/17/2008 for the course ECO 201 taught by Professor Zenker during the Spring '08 term at Elon.
- Spring '08