The ________ Problem Occurs When People Who Do Not Pay

question 93

Multiple Choice

The ________ problem occurs when people who do not pay for information take advantage of the information that other people have paid for.

• A) free-rider
• B) moral hazard
• C) adverse selection
• D) lemons

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Definitions:

Recession

An economic downturn characterized by a significant decline in economic activity across the economy lasting more than a few months.

Educational Backgrounds

The formal schooling and training an individual has received, including degrees, diplomas, and certifications.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It necessitates the need for prioritization and choice.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.