Asked by Grace Davis on Apr 25, 2024
A national campaign is asking for contributions of $1.00 per citizen to fund the building of the September 11th memorial in New York City. The total cost of the memorial is estimated to be $260 million. You decide not to contribute, because your contribution would be small relative to the total that it won't make any difference whether you contribute or not. This is an example of the ________ problem.
A) nonexcludable
B) nonrival in consumption
C) free-rider
D) drop-in-the-bucket
Free-Rider Problem
A situation where individuals or entities consume a good or service without contributing to its cost, leading to underproduction or depletion of the good.
National Campaign
A coordinated effort to promote or achieve a particular goal on a nationwide scale.
September 11th Memorial
A tribute to honor the victims and responders of the September 11, 2001 terrorist attacks in the United States.
- Explain the significance of individual contributions to collective actions and the related problems.
Learning Objectives
- Explain the significance of individual contributions to collective actions and the related problems.