When the Free-Rider Problem Exists

question 64

Multiple Choice

When the free-rider problem exists,

• A) the market will devote too few resources to the production of the good.
• B) the cost of the good will always be more than the benefit of the good.
• C) the good will not be produced.
• D) entrepreneurs will eventually find a way to make free-riders pay their share.

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Definitions:

NAALC

The North American Agreement on Labor Cooperation, an agreement between the USA, Canada, and Mexico to promote labor principles and enforce labor laws.

Cross-border Cooperation

Collaborative efforts and partnerships that occur across national boundaries, typically involving governments, organizations, or companies to achieve common goals.

European Works Council

An institution resulting from EU legislation that represents employees in multinational companies, focusing on informing and consulting them on transnational matters affecting their employment.

Transnational

Extending or operating across national boundaries, often used to describe companies, organizations, or activities that are not confined to a single country.