Multiple Choice
Because of the free-rider problem, which of the following is most likely to occur when a good is non-excludable and non-rivalrous?
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8. The Types of Goods
The Free Rider Problem and the Tragedy of the Commons
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which term best describes the situation where an individual or entity has the exclusive right to determine how a resource is used?
A
Private property rights
B
Public goods provision
C
Free rider status
D
Common access rights
Verified step by step guidance1
Understand the concept of property rights, which refers to the legal rights to use, control, and transfer a resource or asset.
Recognize that 'private property rights' mean an individual or entity has exclusive control over a resource, allowing them to decide how it is used without interference from others.
Contrast this with 'public goods provision,' which involves resources or goods that are non-excludable and non-rivalrous, meaning no one has exclusive control.
Note that 'free rider status' refers to individuals who benefit from a resource without paying for it, typically in the context of public goods.
Understand that 'common access rights' describe resources that are shared among multiple users without exclusive ownership, often leading to potential overuse.
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