Public Goods Are Characterized by the Free-Rider Problem Because

question 157

Multiple Choice

Public goods are characterized by the free-rider problem because

• A) no one can be excluded from the benefits of public goods once they are produced.
• B) public goods are usually things that people really do not want to consume.
• C) public goods are characterized by the principle of rival consumption.
• D) public goods can easily be subdivided into small units.

---

Definitions:

Expected Value

A calculated average or mean of all possible outcomes of a random variable, considering the probabilities of each outcome.

Binomial Random Variable

A type of discrete random variable that arises in situations where an experiment or process is repeated a fixed number of times, with each trial having two possible outcomes (success or failure) and a constant probability of success.

Binomial Probability Distribution

A probability distribution that summarizes the likelihood that a variable will take one of two independent values under a given set of parameters or conditions.

Binomial Problem

A statistical question or experiment that has exactly two possible outcomes, 'success' or 'failure', and where the probability of success is the same each time the experiment is conducted.