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A lighthouse and national defense are examples of [[public goods]]. The market would not provide those goods as it would be unable to charge a price to all users/consumers. It would be both unprofitable and impractical to attempt to do so. They suffer from what is known as the '''free rider''' problem.
A lighthouse and national defense are examples of [[public good]]s. The market would not provide those goods as it would be unable to charge a price to all users/consumers. It would be both unprofitable and impractical to attempt to do so. They suffer from what is known as the '''free rider''' problem.
The free-rider problem is often cited in economics as justification for taxes in order to compel most people to share the costs for public goods such as national defense or public education.
The free-rider problem is often cited in economics as justification for taxes in order to compel most people to share the costs for public goods such as national defense or public education.
[[category:sociology]]
[[category:sociology]]