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

Lighthouses are a classic example of a good best provided by the government. They serve an essential public function—helping navigate ships safely to shore— and are non-excludable, meaning that once a lighthouse is built, it benefits all ships in its vicinity, regardless of whether they contribute to its funding. This makes it prone to the free-rider problem, where individuals might enjoy the benefits without paying.

Unlike lighthouses, the other options are either excludable or can be provided adequately by the market. Windows, cars, and bread are consumer goods easily managed by private enterprises, which can charge for their use, ensuring that those who utilize them contribute to their upkeep and production. Government involvement in these cases would introduce inefficiencies, as the market can sufficiently meet demand.