One way that the American Association of Retired Persons (AARP) has been effective at overcoming the free-rider problem is by providing ________ benefits to its members.
A)selective
B)elective
C)free-rider
D)public good

Question

Quizplus · Accepted Answer

Providing selective benefits is an effective way to overcome the free-rider problem because it gives members a reason to join and participate in the organization. Selective benefits are benefits that are only available to members of the organization, so individuals who want access to these benefits need to become members and pay their dues. This makes the decision to join and participate in the organization more rational, since individuals can see the tangible benefits they will receive and weigh them against the cost of membership.

One Way That the American Association of Retired Persons (AARP)