The Free- Rider Problem Is the Inability of Private Markets

question 142

Multiple Choice

The free- rider problem is the inability of private markets to achieve the efficient level of production of

• A) private goods.
• B) rival goods.
• C) excludable goods.
• D) public goods.

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Definitions:

General Journal

A journal used in accounting that records all day-to-day financial transactions in chronological order.

Unearned Legal Fees Revenue

Revenue recognized for legal services not yet provided; it is recorded as a liability until the service is delivered.

General Journal

A foundational accounting record where transactions are recorded in chronological order before being posted to specific accounts in the general ledger.

General Journal

An accounting ledger where all types of financial transactions are initially recorded before being posted to specific accounts.