Which of the following is an element of the free-rider problem associated with a public good?

• A. Individuals can benefit from the good without paying for it
• B. The government always provides the good efficiently
• C. The good is excludable and rival in consumption
• D. Producers can easily charge each user for their consumption

Answer: (A)

Verified step by step guidance

1. Understand the concept of a public good: A public good is characterized by being non-excludable (people cannot be prevented from using it) and non-rivalrous (one person's use does not reduce availability to others).
2. Define the free-rider problem: This occurs when individuals can enjoy the benefits of a good without paying for it, because they cannot be excluded from its use.
3. Analyze each option in the context of the free-rider problem: The key element is that individuals benefit without paying, which leads to under-provision of the good if left to private markets.
4. Recognize that the statement 'Individuals can benefit from the good without paying for it' directly describes the free-rider problem.
5. Note that other options either contradict the nature of public goods (e.g., excludability and rivalry) or incorrectly describe government provision or producer behavior.