Many nations are consistently accused of enjoying the benefits of membership in the United Nations, yet they provide few or no funds to support the organization. This is an example of
A) the principle of rival consumption.
B) the free-rider problem.
C) the negative externality problem.
D) the property rights problem.

Question

Quizplus · Accepted Answer

The situation described is the free-rider problem, which refers to individuals or nations benefiting from a public good (such as the services provided by the UN) without contributing their fair share to its provision. The principle of rival consumption refers to a characteristic of a good where its use by one individual or nation reduces its availability to others, which is not applicable to the UN. The negative externality problem refers to a situation where the actions of one individual or nation impose costs on others, while the property rights problem relates to the allocation and protection of property rights.

Many Nations Are Consistently Accused of Enjoying the Benefits of Membership