The Free-Rider Problem Is

question 96

Multiple Choice

The free-rider problem is

• A)the use of the public goods provided by a state by residents of another state.
• B)the incentive people have to avoid paying for a good they cannot be excluded from consuming.
• C)the incentive people have once they are receiving welfare to keep getting welfare.
• D)that people cannot be forced to accept public goods.

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Definitions:

Mutually Agreed

A condition or circumstance where all parties involved have consented to the terms or decisions proposed, often used in contracts or negotiations.

Prospective Customers

Individuals or organizations likely to become clients or customers of a business in the future.

Real Principal

The actual entity or individual for whom an agent or representative acts, holding the ultimate authority and benefit in transactions or contracts.

Unauthorized Contract

An agreement that lacks the approval or authority from the necessary or legally required parties.