The free-rider problem is
A)the use of the public goods provided by a state by residents of another state.
B)the incentive people have to avoid paying for a good they cannot be excluded from consuming.
C)the incentive people have once they are receiving welfare to keep getting welfare.
D)that people cannot be forced to accept public goods.

Question

Quizplus · Accepted Answer

The free-rider problem refers to the incentive people have to avoid paying for a good they cannot be excluded from consuming. This is often seen with public goods, which are non-excludable and non-rivalrous, making it difficult to charge individuals for their use. As a result, some individuals may choose to not pay for the good if they know they can still benefit from it, leading to a free-rider problem.

The Free-Rider Problem Is