The free-rider problem is the absence of an incentive for
A) firms to produce public goods.
B) people to use common resources.
C) people to pay for what they consume.
D) people to vote.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can consume a good without paying for it, leading to underfunding or underproduction of that good. This is common with public goods, where people benefit without directly contributing to the cost.

The Free-Rider Problem Is the Absence of an Incentive for