The Free Rider Problem

question 70

Multiple Choice

The free rider problem:

• A) can never prevent pure public goods from being supplied.
• B) results because people act unselfishly.
• C) results because people behave irrationally.
• D) prevents voluntary cost sharing from achieving the efficient output of a public good.

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Definitions:

Induce Consumers

Actions or strategies by businesses designed to encourage or persuade consumers to purchase goods and services.

Public Policy

Government actions, including laws and regulations, designed to address public issues and achieve desirable outcomes for society.

Energy Consumption

The amount of energy utilized by systems, devices, or processes over a specified period, often measured in joules, kilowatt-hours, or calories.

Educate Consumers

The process of informing consumers about products, services, and best practices, enabling them to make informed decisions.