A Free-Rider Problem Exists When a Good That Has the Following

question 18

Multiple Choice

A free-rider problem exists when a good that has the following characteristic?

• A) Rivalry in consumption.
• B) Elastic demand.
• C) Inelastic demand.
• D) Nonexcludable.

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Definitions:

Entitativity

The degree to which a group is perceived as being a coherent, distinct, and unified entity.

Permeability

The quality of a boundary or barrier to allow substances or influences to pass through it.

Fraternity

A group of people sharing common interests, beliefs, or profession, often formed in educational institutions or as part of social or philanthropic objectives.

Supreme Court

The highest judiciary authority in many countries, responsible for interpreting the constitution and laws, and in some cases, determining the legality of executive decisions.