In the Presence of Free Riders,the Equilibrium Allocation of Any

question 24

Multiple Choice

In the presence of free riders,the equilibrium allocation of any good will be

• A)more than optimal.
• B)zero.
• C)optimal.
• D)less than optimal.

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Definitions:

Power Distance Cultures

Societies or cultures that accept and maintain differences in power and authority among their members.

Individualistic

Characterized by independence and self-reliance in thought and action, prioritizing personal goals over group goals.

Cultural Tightness

The strength and enforcement of social norms and the level of tolerance for deviant behavior within a culture.

Standards for Behaviour

Established norms or criteria that guide acceptable and appropriate actions within a society or organization.