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:

Non-Governmental Organization

An independent organization not affiliated with any government, often involved in humanitarian, environmental, educational, or development work.

Persuasion Strategy

Techniques and methods used to influence others' beliefs, attitudes, intentions, motivations, or behaviors favorably.

Organizations

Structured groups of people working together toward shared goals, often characterized by a hierarchy of authority.

Emotional Links

The connections or bonds formed through shared feelings, experiences, or empathy between individuals or entities.