In an effort to overcome the free-rider problem, noneconomic groups have:

• A. relied solely on voluntary contributions without any incentives
• B. restricted access to public goods for non-members
• C. used selective incentives to encourage participation
• D. eliminated all forms of group membership fees

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the free-rider problem, which occurs when individuals benefit from a good or service without paying for it, leading to under-provision of that good or service.
2. Step 2: Recognize that noneconomic groups face this problem because public goods they provide can be consumed without direct payment, reducing members' incentives to contribute voluntarily.
3. Step 3: Identify that to overcome the free-rider problem, groups often use selective incentives—these are benefits or rewards available only to those who participate or contribute, thus encouraging active membership.
4. Step 4: Note that relying solely on voluntary contributions without incentives usually fails to solve the free-rider problem because free-riders have no reason to contribute.
5. Step 5: Understand that restricting access to public goods for non-members or eliminating membership fees are not effective or common strategies to solve the free-rider problem in noneconomic groups.