Arranging matching charitable contributions will ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A) increase; smaller
B) increase; larger
C) reduce; smaller
D) reduce; larger

Question

Quizplus · Accepted Answer

Arranging matching charitable contributions reduces the free-rider problem because individuals are more likely to contribute if they know their contributions will be matched, effectively doubling the impact of their donation. This incentive leads to a larger level of contribution to the public good.

Arranging Matching Charitable Contributions Will ________ the Free-Rider Problem and Lead