When a Group Provides a Collective Good or Service,______

question 25

Multiple Choice

When a group provides a collective good or service,______.

• A) entrepreneurial leaders find ways to limit the benefits strictly to group members
• B) the group's membership is likely to increase
• C) the group can divide costs to each person for providing the good
• D) the group will inevitably confront the free rider problem
• E) the group will overcome the free rider problem more easily than will groups that provide exclusive goods

---

Definitions:

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Unconsummated Transaction

A business deal or trade that has been negotiated but not finalized or completed.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Capitalism

An economic system characterized by private ownership of the means of production, competition, and the pursuit of profit.