The free-rider problem is
A) the use of private goods in one state by residents of another state.
B) the incentive that people have to avoid paying for a public good.
C) the incentive that 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 situation where people have an incentive to avoid paying for a public good because they can still benefit from it even if they don't contribute. This creates a collective action problem, where it may be difficult to get enough people to voluntarily pay for the public good and ensure its provision.

The Free-Rider Problem Is