The tendency of people to avoid paying for a good's benefits when the benefits can be obtained for free is called the free-_____ problem.

A) cost
B) rider
C) goods
D) market

Question

The tendency of people to avoid paying for a good's benefits when the benefits can be obtained for free is called the free-_____ problem.A) costB) riderC) goodsD) market

marquis crawford · Accepted Answer

Final Answer : B, Explanation :  The free-rider problem refers to the tendency of individuals to avoid paying for a good or service when they can still benefit from it without contributing to the cost. This often occurs when the good or service is a public good, which is non-excludable (meaning people cannot be prevented from using it) and non-rivalrous (meaning one person's use does not diminish another person's use). In such cases, people have an incentive to free-ride and enjoy the benefits without paying their fair share of the cost.

The tendency of people to avoid paying for a good's benefits when the benefits can be obtained for free is called the free-_____ problem.

A) cost
B) rider
C) goods
D) market

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