Public goods create a free-rider problem because the quantity of the good that a person consumes ________ for that good.
A) does not depend on the amount that the person pays
B) increases as that person pays less
C) increases as that person pays more
D) decreases as that person pays more

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning individuals can consume them without paying, leading to the free-rider problem where people benefit without contributing to the cost.

Public Goods Create a Free-Rider Problem Because the Quantity of the Good