The free-rider problem arisesA) when people feel their contribution is so small relative to the total amount needed that it won't make a difference whether they contribute or not.B) when people realize they will still receive the benefits of a good whether they pay for it or not.C) whenever the government produces a good or service.D) whenever there is a surplus of the product in the market.

Question

The free-rider problem arisesA)  when people feel their contribution is so small relative to the total amount needed that it won't make a difference whether they contribute or not.B)  when people realize they will still receive the benefits of a good whether they pay for it or not.C)  whenever the government produces a good or service.D)  whenever there is a surplus of the product in the market.

Kaitijane Blumberg · Accepted Answer

Final Answer : B, Explanation :  The free-rider problem occurs when individuals can benefit from a good without contributing to its cost, leading to under-provision of that good.

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