Asked by
Kevin Guzman
on Nov 25, 2024
Verified
The free-rider problem refers to the local government's problem of finding funds to provide free bus rides in the city.
Free-Rider Problem
A situation in which individuals benefit from resources, goods, or services without paying for the cost of the benefit, leading to underprovision of those goods or services.
Local Government
A form of public administration which, in a majority of contexts, exists as the lowest tier of administration within a given state.
Funds
Resources in the form of money available for transactions or investments.
- Recognize and elucidate the issue of free-riders and how it affects the supply of collective goods.
Verified Answer
LT
Learning Objectives
- Recognize and elucidate the issue of free-riders and how it affects the supply of collective goods.