The free-rider problem occurs because
A) members of Congress are presented with many opportunities to amend a piece of legislation.
B) the government subsidizes most forms of transportation in the United States.
C) the benefits of a group's actions are available only to a specific segment of society.
D) the benefits of a group's actions are broadly available and cannot be denied to nonmembers.
E) members of Congress listen only to organized interest groups and not to public opinion polls.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when the benefits of a group's actions are broadly available and cannot be denied to nonmembers. This means that individuals can benefit from the group's actions without actually contributing to its efforts or funding. This can result in a situation where people opt out of participating because they can still receive the benefits, leading to a collective action problem.

The Free-Rider Problem Occurs Because