A Free-Rider Problem Exists When

question 85

Multiple Choice

A free-rider problem exists when:

• A) people receive a benefit they do not need to pay for.
• B) firms impose a cost on third parties.
• C) negative externalities exist.
• D) a private good is produced.
• E) any market is in equilibrium.

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Definitions:

Participants

Individuals who take part in a study, survey, or experiment, often contributing data or responses to research.

APA Ethics Guidelines

A set of principles designed by the American Psychological Association to guide conduct in psychology, ensuring integrity, professional competence, and respect.

Altruism

The principle or practice of selfless concern for the well-being of others, often at a cost to oneself.

Validity

The extent to which a concept, conclusion or measurement is well-founded and likely corresponds accurately to the real world.