The free rider problem suggests that an individual will tend to:
A)produce more than the optimal quantity of a public good.
B)produce less than the optimal quantity of a public good.
C)produce the optimal quantity of a public good if it is funded out of tax revenue.
D)do none of the above.

Question

Quizplus · Accepted Answer

The free rider problem suggests that individuals will try to benefit from a public good without contributing to its provision. As a result, they are likely to produce less than the optimal quantity of a public good, as they do not want to bear the cost of provision themselves. This is why B is the correct answer.

The Free Rider Problem Suggests That an Individual Will Tend