The Free-Rider Problem

question 313

Multiple Choice

The free-rider problem

• A)forces the supply of a public good to exceed its demand.
• B)results in common resources becoming club goods.
• C)explains why many local governments supply public goods.
• D)results in public goods becoming private goods.

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Definitions:

Increases

Refers to a situation where there is a rise in value, quantity, or another measurable factor.

Discretionary Components

Elements of an employee's compensation that are not fixed, including bonuses, incentives, and other forms of variable pay based on performance.

Gross Income

The total revenue generated by a person or organization before any deductions are made for expenses.

Consumer Confidence

A measure of how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economy.