The Free Rider Problem Refers to a Situation in Which

Multiple Choice

The free rider problem refers to a situation in which

A) people consume a pure public good without payment, even though the good may not be produced if no one chooses to pay.
B) the marginal cost of allowing additional consumers to consume a public good is zero.
C) high income individuals subsidise the production of goods, such as education, that make society better off.
D) markets fail to allocate resources efficiently when benefits outweigh costs.