The free rider problem associated with the provision of a public good becomes unsustainable with a(n):
A)increase in the number of beneficiaries.
B)decrease in the accessibility of the good.
C)increase in the elasticity of supply of the good.
D)decrease in the budget deficit.

Question

Quizplus · Accepted Answer

The free rider problem occurs when individuals can benefit from a public good without contributing to its provision. As the number of beneficiaries increases, the free rider problem becomes more severe and, without a mechanism to encourage contribution or enforce payment, provision of the public good can become unsustainable.

The Free Rider Problem Associated with the Provision of a Public