The Tendency of People or Firms to Consume a Public

question 69

Multiple Choice

The tendency of people or firms to consume a public good without paying for it is the ________ problem.

• A) free-cost
• B) free-rider
• C) free-goods
• D) free-market

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Definitions:

Fraudulent Misrepresentation

Fraudulent misrepresentation is a false statement made by one party to another, with the intent to deceive and induce the other party to act, resulting in harm.

Undue Influence

An illegitimate power exercised by one person over another in order to induce the latter to make a decision or a legal transaction that greatly benefits the former.

Non Est Factum

A legal defense claiming that a contract is invalid because the signer was unaware of its nature due to an honest mistake.

Functionally Illiterate

The condition of having limited reading and writing skills that are insufficient for everyday needs.