The Free-Rider Problem Occurs When

question 21

Multiple Choice

The free-rider problem occurs when

• A)people fail to get help in an emergency because they think someone else will do it.
• B)individuals keep their personal desires hidden in order to be accepted by the group.
• C)people refuse to contribute to a common resource when the resource is free.
• D)individuals choose public transportation over driving their own vehicles.

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Definitions:

National Debt

The full amount of capital that a country's political authority has borrowed through a range of means.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured by GDP growth.

Budget Deficits

The situation that occurs when a government spends more money than it receives in revenue over a specific period of time.

Federal Budget Deficits

The financial situation where the U.S. government's expenditures exceed its revenues within a fiscal year.