The Free-Rider Problem Exists with

question 27

Multiple Choice

The free-rider problem exists with

• A)public transportation
• B)knowledge.
• C)online music subscriptions.
• D)All of the above are correct.

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Definitions:

Insurable Interest

A principle requiring that a person purchasing insurance has a legitimate interest in the continuation of the life, property, or event insured, enough to incur a financial loss if the insured risk occurs.

Shipment Contract

A contract that requires the seller to arrange for the transportation of goods to the buyer, where the risk of loss passes to the buyer upon the seller's delivery to the carrier.

FOB Miami

A shipping term indicating that the seller of goods is responsible for them until they're loaded onto a vessel in Miami; from that point, the buyer assumes risk and costs.

Destination Contract

A type of contract where the seller is responsible for the goods until they are delivered to a specified destination.