Which of the Following Statements Illustrates the Free-Rider Problem

question 25

Multiple Choice

Which of the following statements illustrates the free-rider problem?

• A)By reliably reciprocating a cooperative behavior, all individuals in the population increase their fitness.
• B)Some daughters forego having offspring of their own as they help their mother with brood care.
• C)An individual spends only half an hour grooming others for each hour of grooming it has received.
• D)Some individuals forgo reproduction to avoid overpopulation of a species' habitat.

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Definitions:

Covariance

A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns move together. A negative covariance means they vary inversely.

Variance

A measure of the dispersion of a random variable. Equals the expected value of the squared deviation from the mean.

Fairly-Priced Securities

Securities that are believed to be priced appropriately according to their risk level and the expected rate of return.