A free-rider problem occurs when the
A) good is excludable.
B) good is offered at no charge.
C) good is rival.
D) good is nonexcludable.
D
You might also like to view...
Which of the following is true of the production possibilities curve?
a. It assumes a fixed level of technology. b. It assumes resources are fixed. c. It assumes resources are fully employed. d. All of these are correct.
A wage that allows people to pay for the necessities of life is known as a(n): a. equilibrium wage. b. minimum wage
c. living wage. d. fair wage. e. subsistence wage.
The presence of a negative externality is likely to give rise to significant market failures when: a. property rights are not well-defined
b. property rights are well-defined. c. there are few victims of pollution and few polluters. d. transaction costs are relatively low.
Which of the following would be a disadvantage of a sole proprietorship?
a. limited liability b. limited ability to raise funds to expand business c. too many people involved in decision making d. inability to produce more than one product e. inability to advertise