Asked by Bruce Eugine on May 04, 2024
Verified
The free-rider problem is intrinsic to public goods.
Free-rider Problem
A situation in which individuals consume more than their fair share or pay less than their fair share of the cost of a shared resource.
Public Good
A good that is non-excludable and non-rivalrous, meaning its consumption by one individual does not reduce its availability to others.
- Recognize and elucidate the issue of free-riders in relation to public goods.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
The free-rider problem occurs because public goods are non-excludable and non-rivalrous, meaning people cannot be easily excluded from using them and one person's use does not reduce availability for others, leading some to benefit without paying.
Learning Objectives
- Recognize and elucidate the issue of free-riders in relation to public goods.
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