The Free-Rider Problem

question 119

Multiple Choice

The free-rider problem

• A) occurs when people who do not pay for information take advantage of the information other people have to pay for.
• B) suggests that the private sale of information will only be a partial solution to the lemons problem.
• C) prevents the private market from producing enough information to eliminate all the asymmetric information that leads to adverse selection.
• D) all of the above.