Question

Imagine that Reva has joined Enviropro, her neighborhood environmental-cleanup group. Enviropros objective is to maintain a clean neighborhood and provide better garbage collection facilities. Reva encourages her friend Marcel to join the group as well. Marcel refuses as he does not want to pay to join this group. He argues that he already gets collective benefits even without having paid an enrollment fee to join the group. In this scenario, Marcel's argument best exemplifies _______.

Answer 1

The correct answer is the free-rider problem

Explanation: Free-rider Problem, in economics, refers to the case of someone who benefits from resources, goods or services without paying the cost of the benefit.

As in this text, this free-rider problem is very normalized in our capitalist society, some people take advantage of others and this increases social inequalities