The Free Rider Problem Occurs

question 4

Multiple Choice

The free rider problem occurs:

• A)when externalities are unaccounted for.
• B)for both exclusive and non-exclusive goods.
• C)when a governmental body intervenes in the workings of a private market.
• D)a consumer consumes a good that others pay for but pays nothing herself.

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Definitions:

Entry

A record of a financial transaction in an accounting system.

Gross Increases

Refers to the total increment in volume or quantity before any deductions like taxes or expenses are applied.

Business Activities

Various actions undertaken by a company as part of its operation, including investing, financing, and operating activities.

Revenues

The income received by a business from its normal business operations, often from the sale of goods or services.