The Free Rider Problem Is Caused by The

question 99

Multiple Choice

The free rider problem is caused by the:

• A) nonexcludability of a good leading to the undersupply of it.
• B) incentive to oversupply the good since it is nonrival in consumption.
• C) "rivalness" in consumption of a good leading to the overconsumption of that good.
• D) "rivalness" in consumption of a good leading to the undersupply of it.

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Definitions:

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Exchange Stage

A phase in the development of relationships, especially in the workplace, where mutual values, benefits, and commitments are established between parties.

Group Norms

Shared expectations and rules that guide the behavior of people within a group.

Social Contract

A theory or model that explains how society is organized and individuals' mutual obligations based on an agreement among the society’s members or between the governed and the government.