The Free-Rider Problem

question 70

Multiple Choice

The free-rider problem

• A)Arises from the ability to exclude an individual from the benefits of someone else's purchase.
• B)Is a government failure resulting from consumption of private goods.
• C)Reflects the inability to exclude an individual from the benefits of someone else's purchase.
• D)Means that the market mechanism is the most efficient way to produce public goods.

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Definitions:

Procedural Rules

Guidelines that govern the process and methods used in legal and administrative proceedings.

Substantive Law

The part of law that deals with the rights and duties of people and the punishments for those who violate these laws.

Requests for Admissions

A pre-trial procedure in civil litigation where one party requests the other to admit the truth of certain facts, thereby narrowing the scope of the dispute.

Interrogatories

A set of formal written questions issued by one party in a lawsuit to another party, which must be answered under oath.