Asked by
Kory AJ Jaydin
on Nov 17, 2024
Verified
The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.
Free-Rider Problem
The Free-Rider Problem occurs when individuals consume a good without paying for it, particularly in the case of public goods, leading to an underprovision of that good.
Beneficiaries
Individuals or entities that receive benefits or advantages from something, especially legal benefits or financial gains.
Exclusion
The act of denying someone access to a service, group, or resource, often leading to social or economic disadvantages.
- Identify the free-rider problem and its implications for the provision of public goods.
Verified Answer
AS
Learning Objectives
- Identify the free-rider problem and its implications for the provision of public goods.