When the Free Rider Problem Is Present in a Market

question 52

Multiple Choice

When the free rider problem is present in a market:

• A) what people pay often does not reflect the real value they put on a good.
• B) the good will likely be over consumed.
• C) the good is rival in consumption.
• D) the good is easily excludable.

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Definitions:

Fixed Action Pattern

An instinctive behavioral sequence that is relatively invariant within the species and almost inevitably runs to completion once initiated.

Dishabituation

The renewal of a response, previously habituated, following a change in stimulus.

Dehabituation

The revival of a response that had been previously habituated, often as a result of presenting a new, novel stimulus.

Novel Situation

A new or unfamiliar situation that requires adaptive behaviors or cognitive processes to navigate.