When Does the Free-Rider Problem Arise

question 11

Multiple Choice

When does the free-rider problem arise?

• A) when someone who benefits from a good does not have to contribute to paying for it
• B) when a firm does not have to advertise, because its customers recommend the product to their friends
• C) when policymakers ignore opportunity costs in making decisions
• D) when production of a good generates pollution

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Definitions:

Pancreas

A glandular organ in the digestive system and endocrine system which secretes digestive enzymes and hormones such as insulin.

Posterior Pituitary

An extension of the brain located at the base of the skull responsible for the secretion of hormones like oxytocin and vasopressin.

Metanephros

Most caudally located of the three excretory organs appearing during embryonic development; becomes the permanent kidney of mammals. In mammalian embryos, it is formed caudal to the mesonephros and develops later as the mesonephros undergoes regression.

Pronephros

In the embryos of higher vertebrates, a series of tubules emptying into the celomic cavity. It is a temporary structure in the human embryo, followed by the mesonephros and still later by the metanephros, which gives rise to the kidney.