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.

---

Definitions:

Psychological Traits

Enduring characteristics of an individual's behavior, thoughts, and emotions.

Social Relationships

Connections between individuals in a society, governed by affinities, interactions, and social structures.

Heart Attack

A medical emergency characterized by the death of heart muscle due to the loss of blood supply.

Stroke

An event in the cardiovascular system in which a blood clot or plug of fat blocks an artery and cuts off the blood supply to a particular area of the brain.