Final answer:
Public goods relate to collective action problems and free riding because they are services provided to all without direct charges, leading to situations where beneficiaries may not contribute to their costs. This results in a free rider problem, where individuals enjoy benefits they did not pay for, which poses a challenge in funding and maintaining public goods.
Step-by-step explanation:
The provision of public goods is closely related to collective action problems and free riding. Public goods, such as a new road in a community or national defense, are services provided without charge and are non-excludable, meaning they are available to all members of society whether or not they contribute to their creation. The problem arises when individuals or entities benefit from a good without contributing to its cost, known as the free rider problem. In many cases, people do not contribute because they assume others will, which can lead to underfunding and underprovision of such goods.
Collective action problems occur in situations like the construction of a road where not all that benefit contribute to its development. This creates an imbalance, as some individuals, the free riders, enjoy the benefits without sharing the costs, leaving others to shoulder the financial or labor burden. Governments, organizations, and societies must find solutions to these problems through mechanisms such as enforcement, incentives, or creating social norms against free riding.