The situation in which individuals are tempted not to contribute to a cause because they will get the benefits even if they do not participate is called theGroup of answer choicessize factor.free-rider problem.special-interest paradox.zero-sum game.none of the above.
Question
The situation in which individuals are tempted not to contribute to a cause because they will get the benefits even if they do not participate is called theGroup of answer choicessize factor.free-rider problem.special-interest paradox.zero-sum game.none of the above.
Solution
The situation you're describing is known as the free-rider problem. This occurs when individuals decide not to contribute to a cause or project, but still expect to benefit from its success. This is a common issue in scenarios where goods or services are provided that everyone can use (public goods), regardless of whether they contributed to its provision or not.
Similar Questions
When a free-rider problem exists,Group of answer choicesthe market will devote too few resources to the production of the good.the cost of the good will always be more than the benefit of the good.the good will not be produced.entrepreneurs will eventually find a way to make free-riders pay their share.
A rational decision maker takes an action if and only if:Group of answer choicesthe net benefit is negativethe marginal benefit exceeds the marginal costthey do not face any trade-offsthe opportunity cost is low
A reward that encourages an individual to do something called:Group of answer choicesNegative incentivePositive incentiveNeutral incentiveIllegal
Economist Mancur Olson suggested that interest groups tend to have a harder time getting around the free-rider problem as they grow larger because:Select one:a. leadership loses its tight control as membership increasesb. their efforts have diminishing returns as the group becomes entrenched in the political mainstreamc. people outside of the group come to see them as a corrupting influenced. individuals do not have much incentive to become active members and supporters of a group that is already more or less working on their behalf
Individuals may benefit from the work of interest groups even if they don't participate in the groups' activities. Because of this, some groups have difficulty recruiting members, a phenomenon known as the - problem.
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