Question

The​ free-rider problem arises when an individual​ ____________. A. does not pay for a good because that individual is engaging in illegal activity. B. pays for a good only when being monitored by the authorities for noncompliance. C. does not pay for a good because nonpayment does not prevent consumption. D. pays for a good only when he or she is in the top quartile of people needing the good.

Answer 1

The free-rider problem arises when an individual [C] does not pay for a good because nonpayment does not prevent consumption.