In Which Situation Does a Free Rider Problem Occur

question 40

Multiple Choice

In which situation does a free rider problem occur?

• A) Someone benefits from a good but does not have to pay for it.
• B) Pollution is generated by the production of a good.
• C) Policymakers ignore opportunity costs when making decisions.
• D) A firm does not advertise its own product because its customers recommend it to their friends.

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Definitions:

Public Support

The backing or endorsement from the general population for a person, policy, or initiative.

Escalation

A process by which conflicts or situations become more severe or intense over time, often leading to further conflicts or crises.

Pentagon Papers

A classified government document leaked in 1971 detailing the United States' political-military involvement in Vietnam from 1945 to 1967.

Daniel Ellsberg

A former United States military analyst who, in the 1970s, released the Pentagon Papers, a top-secret Department of Defense study of U.S. political and military involvement in Vietnam.