Tony is employed as a computer programmer for the State of Illinois. Many of his colleagues are members of AFSCME, a public services employees union, but Tony has not joined the organization because he is anti-union and does not want to pay the annual membership dues. Nevertheless, he still stands to benefit from AFSCME's efforts on behalf of state employees, including a retirement pension and healthcare benefits. This situation is characteristic of ______.

Question

Quizplus · Accepted Answer

The situation described is an example of the free-rider problem, which occurs when individuals benefit from a collective good (such as union representation) without paying for it themselves. Tony benefits from AFSCME's efforts on behalf of all state employees, but he chooses not to contribute to the union through membership dues. This can create a problem for the union in terms of funding and can lead to resentment among members who feel that non-members are taking advantage of their work.

Tony Is Employed as a Computer Programmer for the State