The tendency of people to avoid paying for a good's benefits when the benefits can be obtained for free is called the free-_____ problem.
A)cost
B)rider
C)goods
D)market

Question

Quizplus · Accepted Answer

The free-rider problem refers to the tendency of individuals to avoid paying for a good or service when they can still benefit from it without contributing to the cost. This often occurs when the good or service is a public good, which is non-excludable (meaning people cannot be prevented from using it) and non-rivalrous (meaning one person's use does not diminish another person's use). In such cases, people have an incentive to "free-ride" and enjoy the benefits without paying their fair share of the cost.

The Tendency of People to Avoid Paying for a Good's