A charity that used to arrange matching charitable contributions, but no longer does, is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A) reduce; smaller
B) reduce; larger
C) increase; smaller
D) increase; larger

Question

Quizplus · Accepted Answer

When a charity stops arranging matching contributions, individuals may feel less incentivized to contribute, believing their contribution is less impactful. This can increase the free-rider problem, where individuals rely on others to contribute to the public good, leading to a smaller overall level of contribution.

A Charity That Used to Arrange Matching Charitable Contributions, but No