The "free-rider problem" of public goods refers to
A)individuals' refusal to pay taxes.
B)individuals' attempts to hide their preferences for collective goods and to avoid paying for them.
C)individuals' overuse of collective goods.
D)the inelasticity of individuals' demands for public goods.

Question

Quizplus · Accepted Answer

The free-rider problem of public goods refers to individuals trying to benefit from the collective goods without paying for them. This happens because public goods are non-excludable, meaning that it is difficult to exclude individuals who do not contribute to paying for them. As a result, some individuals may try to hide their preferences for collective goods and avoid paying for them, which is known as the free-rider problem.

The "Free-Rider Problem" of Public Goods Refers to