The free-rider problem is encountered when
A) someone benefits from the consumption of a public good without paying his or her full share.
B) all individuals who consume a public good pay for it.
C) all goods consumed and produced are private goods.
D) all individuals are willing to pay for what they consume.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals benefit from the consumption of a public good without paying their full share. This is because public goods are non-rivalrous, meaning that one person's consumption does not decrease the amount available for others. Therefore, individuals may choose not to contribute financially to the provision of the public good, but still benefit from it.

The Free-Rider Problem Is Encountered When