The free-rider problem arises whenever:
A)goods cannot be provided exclusively to those who pay for them.
B)the price of a good is very low.
C)the government provides goods or services.
D)there is an excess demand for a good.
E)the price of a good is very high.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when non-paying individuals can consume a good without contributing to its cost. This usually occurs when it is difficult to exclude non-payers from enjoying the benefits of the good.

The Free-Rider Problem Arises Whenever