The free-rider problem
A)forces the supply of a public good to exceed its demand.
B)results in common resources becoming club goods.
C)explains why many local governments supply public goods.
D)results in public goods becoming private goods.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can benefit from a good without paying for it, leading to under-provision of that good. Local governments often supply public goods to ensure they are provided despite the free-rider problem.

The Free-Rider Problem