The free-rider problem occurs for
A) private goods and public goods.
B) private goods but not public goods.
C) public goods but not private goods.
D) neither public nor private goods.

Question

Quizplus · Accepted Answer

The free-rider problem occurs for public goods, as individuals can enjoy the benefits of the good without paying for it. Private goods, on the other hand, can be excluded from those who do not pay for them, therefore eliminating the free-rider problem.

The Free-Rider Problem Occurs for