When Good X Is Produced, Some People Benefit

question 15

Multiple Choice

When good X is produced, some people benefit. A free-rider problem arises when

• A)the number of people who benefit is small and it is impossible to prevent anyone from benefiting.
• B)the number of beneficiaries is small and it is possible to prevent some people from benefiting.
• C)the number of beneficiaries is large and it is impossible to prevent anyone from benefiting.
• D)the number of beneficiaries is large and it is possible to prevent some people from benefiting.

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Definitions:

Private Property

Assets or possessions owned by individuals or corporations and protected by law from unauthorized use or trespass by others.

Alternative Uses

The different purposes or applications a resource can be used for, highlighting economic choices and trade-offs.

Capital Goods

Long-lasting goods acquired and used by businesses to produce goods and services and contribute to their productive capacity.

Productive Efficiency

A situation where it's impossible to produce more of one good without producing less of another, utilizing all resources efficiently.