Public Goods Create a Free- Rider Problem Because the Quantity

question 25

Multiple Choice

Public goods create a free- rider problem because the quantity of the good that a person consumes
For that good.

• A) increases as that person pays less
• B) increases as that person pays more
• C) decreases as that person pays more
• D) does not depend on the amount that the person pays

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Definitions:

Social Dilemma

A situation in which individual self-interest conflicts with collective interest, leading to challenges in cooperative behavior and optimal societal outcomes.

Uncertainty Threat

The feeling of discomfort or stress caused by not knowing or by having doubts about outcomes or intentions.

Uncertainty-Identity Theory

A theory that posits individuals join and strongly identify with groups to reduce uncertainty about themselves and the world.

Ambiguity

The presence of uncertainty or lack of clarity in information, meaning, or instructions.