The free-rider problem implies that
A) each person will pay the full cost of the public good.
B) nobody wants the public good.
C) everybody will pay a portion of the cost of the public good.
D) each person will try to benefit from the public good without paying for it.

Question

Quizplus · Accepted Answer

The free-rider problem arises when people can benefit from a public good without paying for it. This leads individuals to try to use the public good without contributing to its provision, resulting in the under-provision of the public good. Therefore, option D is the correct choice. Options A and C are incorrect because they imply that everyone contributes to the public good, which is not the case with the free-rider problem. Option B is incorrect because it assumes that nobody wants the public good, which may not be true.

The Free-Rider Problem Implies That