The Problem Caused When People Are Often Reluctant to Voluntarily

question 25

Multiple Choice

The problem caused when people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone,even for those who don't pay is called the:

• A)free-rider problem.
• B)drop in the bucket hypothesis.
• C)rational ignorance problem.
• D)moral hazard problem.

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Definitions:

Business Owners

Individuals who own and often operate a business, assuming the financial risks and responsibilities associated with their venture.

Income Uncertainty

Refers to the unpredictability in the amount of money earned from one's job or investment, leading to financial instability.

New Business

An enterprise recently established to provide goods or services to a market.

Successful Entrepreneur

An individual who has effectively identified a market opportunity and organized the resources necessary to capitalize on it, resulting in a profitable and sustainable business venture.