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

The **free-rider problem** occurs when individuals can benefit from a good without paying for it, leading to under-provision of that good by the market. To address this, the government often steps in to provide such goods, funded through taxes. Let's evaluate each option: a. **Lighthouses** - **Public Good Characteristics**: Lighthouses are a classic example of a public good. They are **non-excludable** (boats cannot be easily prevented from benefiting) and **non-rivalrous** (one boat benefiting doesn't reduce the benefit for others). - **Conclusion**: Ideal for government provision to avoid the free-rider problem. b. **Windows** - **Private Good Characteristics**: Windows are **excludable** and **rivalrous**. Individuals or property owners pay for their own windows. - **Conclusion**: Typically provided by the private market. c. **Automobiles** - **Private Good Characteristics**: Automobiles are **excludable** and **rivalrous**. People purchase their own vehicles. - **Conclusion**: Provided by the private market. d. **Bread** - **Private Good Characteristics**: Bread is **excludable** and **rivalrous**. Consumers buy bread from stores. - **Conclusion**: Provided by the private market. **Therefore, the best answer is:** **a. lighthouses**