The free-rider problem occurs because:
A) it is easy to exclude others from consuming the good.
B) consumption is rivalrous,so that the consumption of a product by one individual diminishes that available for others.
C) exclusion is costly or impossible,so that a consumer or producer can use the good without having to pay for it.
D) costs are imposed on others not directly involved in the transaction.
E) individuals are not required to pay for those goods which do not yield any utility to them.
Correct Answer:
Verified
Q1: When economic activity imposes costs on others
Q2: Higher the economic freedom in a country:
A)lower
Q3: When all costs and benefits of a
Q4: Which of the following is true of
Q5: When the benefits of an activity are
Q8: Which of the following statements is true?
A)In
Q11: In the case of public goods:
A)the free
Q12: The table below shows the payoff (profit)
Q13: The table below shows the payoff (profit)
Q15: The table below shows the payoff (profit)
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