Question

to avoid the free - rider problem, which of the following goods is best provided by the government and paid for with tax dollars?
a. windows
b. lighthouses
c. automobiles
d. bread

Explanation:

The free-rider problem occurs with public goods—non-excludable and non-rivalrous goods, where people can benefit without paying. Lighthouses are public goods: ships can use their light without being excluded, and one ship's use doesn't reduce access for others. Private providers can't easily charge users, so government provision via taxes solves the free-rider issue. Windows, automobiles, and bread are private goods (excludable and rivalrous), so they don't face this problem.

Answer:

b. lighthouses