The free-rider problem is associated with
A) public goods.
B) private goods.
C) common resources.
D) any type of good.
E) natural monopolies.

Question

Quizplus · Accepted Answer

The free-rider problem occurs with public goods, which are non-excludable and non-rival in consumption. This means that it is difficult to exclude people from using the good once it is provided and one person's use of the good does not decrease its availability to others. As a result, people may choose not to contribute to the provision of the public good and instead benefit from the contributions of others without paying their fair share.

The Free-Rider Problem Is Associated with