The Free-Rider Problem Is

question 129

Multiple Choice

The free-rider problem is

• A) the use of private goods in one state by residents of another state.
• B) the incentive that people have to avoid paying for a public good.
• C) the incentive that 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:

Candy Store

A retail establishment specializing in the sale of candies, sweets, and similar confectionery products.

Slope

Slope is the measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Economic Growth

A rise in the output of goods and services within an economy across a specified timeframe, generally gauged by Gross Domestic Product (GDP).

Production Possibilities

A curve or frontier that shows the various combinations of different goods that an economy can produce, given its technology and resources.