The free-rider problem exists because
A) some goods or services are rival and leave some people without them.
B) some goods or services are excludable and cause envy for those who don't have them.
C) people must all consume the same public good and so everyone wants to pay for it.
D) private goods or services cause some people to want to take them for free.
E) people cannot be excluded from consuming public goods even if they don't pay for them.

Question

Quizplus · Accepted Answer

The free-rider problem arises because public goods, by their nature, cannot be excluded from consumption even for those who don't pay for them. This creates a situation where people have an incentive to consume the public good without paying for it, leading to under-provision of the public good.

The Free-Rider Problem Exists Because