The Consequence for Society of the Free Rider Problem Is

question 81

Multiple Choice

The consequence for society of the free rider problem is:

• A)valuable goods and services are oversupplied.
• B)valuable goods and services are undersupplied.
• C)goods and services not valued by the society will be oversupplied.
• D)valuable goods and services are under demanded.

---

Definitions:

Effective Annual Rate

The real return on an investment, taking into account the effect of compounding interest over a year.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs.

Periodic Interest

Interest that is paid or calculated at regular intervals over the life of a loan or investment.

Stated Interest

The interest rate declared on a bond or loan that represents the actual annual cost of borrowing to the borrower.