Public Goods Create a Free-Rider Problem Because

question 35

Multiple Choice

Public goods create a free-rider problem because

• A) people do not want to consume public goods.
• B) people can enjoy the good or service no matter whether or not they pay for it.
• C) only people who pay for the good or service can enjoy the good or service.
• D) the good or service is rival in nature.
• E) the good or service is excludable.

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Definitions:

Resell

The act of selling a purchased good or service to another party, often for a price higher than the original purchase price.

Price Differential

The variation in the price of a product or service in different markets or purchase conditions.

Rational Decision Maker

An individual who makes choices based on reasoning and the systematic evaluation of options to achieve the most beneficial outcome.

Business Trip

A journey taken for work or professional purposes, often involving travel outside of the usual workplace.