Which of the Following Statements Is True of the Free

question 200

Multiple Choice

Which of the following statements is true of the free rider problem?

• A)People consume a pure public good without payment, even though the good may not be produced if no one chooses to pay.
• B)The marginal cost of allowing additional consumers to consume a public good is zero.
• C)High income individuals subsidise the production of goods, such as education, that make society better off.
• D)Markets fail to allocate resources efficiently when benefits outweigh costs.