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Which of the Following Best Illustrates the Free-Rider Problem

Question 58

Multiple Choice

Which of the following best illustrates the free-rider problem?


A) A tollbooth is constructed at the entrance of a privately funded highway.
B) Individuals contribute toward a national defense program by paying taxes to the government.
C) Some homeowners in a mountain area refuse to contribute toward paving the area's access road.
D) You erect a fence around your swimming pool to keep out unsupervised children.
E) A steel mill does not consider the social cost of production while calculating its total cost of production.

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