When people try to benefit from a public good without paying for it we call it the
A) free-rider problem.
B) duopolists' dilemma.
C) public goods problem.
D) taxation problem.

Question

Quizplus · Accepted Answer

The term used to describe the behavior of benefiting from a public good without contributing to its provision is the free-rider problem. This occurs because public goods are non-excludable, meaning that it is impossible to prevent an individual from consuming the good once it is produced. Therefore, if people can consume the good without paying for it, they have no incentive to contribute to its production, leading to the free-rider problem. Choices B, C, and D are not accurate descriptions of this situation.

When People Try to Benefit from a Public Good Without