The Free-Rider Problem Occurs Because

question 73

Multiple Choice

The free-rider problem occurs because

• A)people who pay for information use it freely.
• B)people who do not pay for information use it.
• C)information can never be sold at any price.
• D)it is never profitable to produce information.

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Definitions:

Deferred Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward.

Paycheque

A paycheque is a check issued by an employer to pay an employee for services rendered, typically on a regular basis like weekly or monthly.

Savings Account

A deposit account held at a bank or other financial institution that provides modest interest rates.

Meritocratic System

A system in which advancement in society is based on an individual's capabilities and merits rather than on family, wealth, or social connections.