Free Riding Is a Problem with Public Goods but Not

question 39

Multiple Choice

Free riding is a problem with public goods but not with private goods because for the private good:

• A)the good is a rival good.
• B)the marginal cost of production is greater than zero.
• C)the good is an excludable good.
• D)the good is free.

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Definitions:

Bankruptcy Proceedings

The legal process through which individuals or entities unable to meet their financial obligations can seek relief from some or all of their debts.

Transferred Property

Property or assets that have been legally moved from one owner to another, through sale, gift, inheritance, or other means of conveyance.

Discharge

The termination of an obligation. In bankruptcy, a discharge terminates the debtor's obligation to pay the debts discharged by the court.

Termination

The act of ending something, such as a contract, employment, or agreement.