The free-rider problem refers to:
A)the situation in the Old West when land was largely unfenced and riders had unfettered access to private range land.
B)qualifications, or riders, that clients do not request, but which lawyers tend to include in contracts anyway at no extra charge.
C)a variation on the phrase "There's no such thing as a free lunch," which is replaced by "There's no such thing as a free ride."
D)a situation in which consumers have no incentive to pay for a nonexcludable good.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals have access to a nonexcludable good or service but have no incentive to pay for it, leading to underfunding or undersupply of the good or service. This can cause problems in public goods such as national defense and environmental protection.

The Free-Rider Problem Refers To