The Free-Rider Problem Arises When the Number of Beneficiaries Is

question 146

True/False

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

---

Definitions:

Excludable

A feature of a product or service enabling its owner to exclude others from usage unless payment is received.

Property Rights

The legal rights to possess, use, and dispose of assets, including property and intellectual property.

Allocate Resources

The process of assigning available assets, time, and effort to various tasks or purposes in order to achieve specific goals.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.