Which of the following conditions is violated if there is a free rider problem?
A)Universality
B)Exclusivity
C)Transferability
D) Enforceability

Question

Quizplus · Accepted Answer

The free rider problem occurs when someone can benefit from a public good without paying for it. Exclusivity is the condition required for a good or service to be fully and easily controllable by the provider. If a good is non-excludable, the provider cannot prevent individuals from consuming it without paying for it. Therefore, B is the correct answer since a public good with a free rider problem violates the exclusivity condition.

Which of the Following Conditions Is Violated If There Is