The Free-Rider Problem Occurs Because

question 9

Multiple Choice

The free-rider problem occurs because:

• A)it is easy to exclude others from consuming the good.
• B)consumption is rival in nature,and the consumption of a product by one individual diminishes that available for others.
• C)exclusion is costly or impossible,so that a consumer or producer can use the good without having to pay for it.
• D)the consumption of a good imposes costs on others who not directly involved in the transaction.

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Definitions:

Charitable Nonprofits

Organizations that operate to serve the public interest and benefit the community, qualifying for tax-exempt status under specific legal criteria.

Restrictions

Limitations or constraints imposed on actions, activities, or operations, often set by legal, regulatory, or organizational guidelines.

Lobbying

The act of attempting to influence the decisions of government officials on specific legislation or policies, often conducted by lobbyists representing interest groups.

Charitable Nonprofits

Organizations established for charitable purposes, providing goods, services, or support to the public or specific groups without profit motive.