________ occurs when an individual has no incentive to pay for a good because failure to pay does not prevent consumption.
A) A free-rider problem
B) The paradox of thrift
C) A tragedy of the commons
D) The paradox of plenty

Question

Quizplus · Accepted Answer

A free-rider problem occurs when individuals are able to benefit from a good or service without contributing to its costs. This can lead to under-provision of the good, since no one has an incentive to pay for it.

________ Occurs When an Individual Has No Incentive to Pay