The Free-Rider Dilemma Occurs in the Provision of Public Goods

question 130

True/False

The free-rider dilemma occurs in the provision of public goods because an individual can realize the benefits of someone else's purchase (consumption)of a public good.

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Definitions:

General Public

The broad group of people who are not segmented by any particular category or classification.

Subjective Standard

A legal or evaluative criteria based on personal opinions, feelings, or perspectives, rather than objective, measurable factors.

Requisite Intent

The necessary state of mind or intention required by law for a person to be held legally responsible for his/her actions.

Contract

A legally-binding agreement between two or more parties that outlines obligations and benefits for each party.