The possibility of a free rider exists:
A) in the presence of external costs and benefits.
B) only in the presence of external costs.
C) only in the presence of external benefits.
D) only in the presence of internal costs.
E) only in the presence of a government-produced good.

Question

Quizplus · Accepted Answer

The free rider problem occurs when individuals can benefit from a good or service without paying for it, which typically happens in the presence of external benefits, such as public goods.

The Possibility of a Free Rider Exists