The free-rider problem exists when a good is:
A)nonexcludable.
B)rival in consumption.
C)excludable and rival in consumption.
D)excludable and nonrival in consumption.

Question

Quizplus · Accepted Answer

The free-rider problem occurs with goods that are nonexcludable, meaning it's difficult or impossible to prevent anyone from using the good, regardless of whether they have paid for it. This characteristic leads to under-provision of the good, as people have an incentive to rely on others to pay for it while they enjoy the benefits without contributing.

The Free-Rider Problem Exists When a Good Is