The Free- Rider Problem Arises When Consumption of a Good

question 86

Multiple Choice

The free- rider problem arises when consumption of a good is

• A) nonexcludable.
• B) nonrival but excludable.
• C) rival.
• D) excludable.

---

Definitions:

Voidable Title

Title that occurs when a contract between the original parties would be void but the goods have already been sold to a third party.

Common Law

A legal system based on judicial decisions and customs, rather than on written statutes or codes.

Legal Ownership

The officially recognized possession of property, rights, or interests, backed by law.

Bondable Interest

Interest in a project or property that can be secured or protected by a bond, often related to construction or contractual obligations.