The Free Rider Problem Suggests That a Producer Will Tend

question 108

Multiple Choice

The free rider problem suggests that a producer will tend to:
i.produce more than the optimal quantity of a public good.
ii.produce less than the optimal quantity of a public good.
iii.produce the optimal quantity of a public good if it is funded out of tax revenue.

• A) (i) only
• B) (ii) only
• C) (i) and (iii) only
• D) (ii) and (iii) only

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive or involuntary response without prior learning.

Reflex

A rapid, automatic response to a stimulus, an unconscious process that protects the body from harm or promotes adaptive functions.

Conditioned Stimulus

An initially neutral stimulus that, after being associated with an unconditioned stimulus, comes to trigger a conditioned response in classical conditioning.

Unconditioned Stimulus

An unconditioned stimulus is something that naturally and automatically triggers a response without any learning being involved.