Because of the Free-Rider Problem

question 122

Multiple Choice

Because of the free-rider problem,

• A) the market demand for a public good is overstated.
• B) the market demand for a public good is nonexistent or understated.
• C) government has increasingly yielded to the private sector in producing public goods.
• D) public goods often create serious negative externalities.

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Definitions:

Theorists

Individuals who develop theories, or systematic ideas intended to explain phenomena, in various fields of study.

Individual

A single human being as distinct from a group, society, or community.

Social Movements

Collective, organized efforts aiming to promote or resist change in society or its institutions.

Jurgen Habermas

A German sociologist and philosopher known for his theory on the public sphere and communicative action.