Because of the Free-Rider Problem

question 6

Multiple Choice

Because of the free-rider problem,

• A)private markets tend to undersupply public goods.
• B)the federal government spends too many resources on national defense and not enough resources on medical research.
• C)firework displays provided by private markets have become increasingly popular.
• D)poverty can easily be eliminated through private charity.

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Definitions:

Overpopulation

Overpopulation is a condition where an organism's numbers exceed the carrying capacity of its habitat, leading to environmental degradation and diminished quality of life.

Territoriality

The tendency to stake out an area and a willingness to defend that area from intruders.

Individual Good-Collective

The concept that individual welfare or happiness contributes to the overall good or welfare of the community or society.

Water Shortage

A situation in which the available water supply is insufficient to meet the needs of the population, often leading to serious environmental and social consequences.