When Does the Free-Rider Problem Arise

question 11

Multiple Choice

When does the free-rider problem arise?

• A) when someone who benefits from a good does not have to contribute to paying for it
• B) when a firm does not have to advertise, because its customers recommend the product to their friends
• C) when policymakers ignore opportunity costs in making decisions
• D) when production of a good generates pollution

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Definitions:

Test-retest Reliability

The consistency of a psychological test or assessment over time when administered to the same group of people.

Raw Scores

A raw score represents the number of questions answered correctly on a test or assessment before any adjustments or transformations.

T score

A standardized type of z-score that typically has a mean of 50 and a standard deviation of 10, used for comparing individual scores.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the distribution.