The Free Rider Problem Refers To

question 85

Multiple Choice

The free rider problem refers to:

• A) a situation in which individuals who benefit from a good or service do not pay for it.
• B) a situation in which individuals attempt to persuade government to provide goods and services to them at no cost or at a reduced price.
• C) a situation in which legislators enact inefficient programs in order to receive the political support of lobbyists.
• D) a situation in which some individuals provide basic necessities for other individuals who are financially unable to provide the necessities for themselves.

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Definitions:

Limited Partnership

A business partnership where some owners contribute capital and enjoy profits without participating in day-to-day management, limiting their liabilities.

General Partner

A member of a partnership who has unlimited liability for the debts of the business and actively participates in its management.

Partnership's Checkbook

A financial tool used by a partnership for handling and recording transactions.

Special Charters

Legal documents granted by a government or other authority establishing a corporation or other entity and defining its rights and privileges.