{"id":199725,"date":"2025-03-12T11:26:20","date_gmt":"2025-03-12T11:26:20","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=199725"},"modified":"2025-03-12T11:26:23","modified_gmt":"2025-03-12T11:26:23","slug":"the-free-rider-problem-arises-when-the-number-of-beneficiaries-is-large-and-exclusion-of-any-of-them-is-impossible","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/12\/the-free-rider-problem-arises-when-the-number-of-beneficiaries-is-large-and-exclusion-of-any-of-them-is-impossible\/","title":{"rendered":"The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible"},"content":{"rendered":"\n

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.<\/p>\n\n\n\n

The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n

Answer:<\/h3>\n\n\n\n

The free-rider problem<\/strong> occurs when individuals benefit from a good or service without contributing to its cost, particularly in cases where exclusion is difficult or impossible.<\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

The free-rider problem is most commonly associated with public goods<\/strong>, which are non-excludable<\/strong> (meaning no one can be prevented from using them) and non-rivalrous<\/strong> (one person\u2019s use does not diminish another\u2019s). Classic examples include national defense, public parks, street lighting, and clean air<\/strong>. Since these goods are available to everyone, individuals may choose to refrain from paying<\/strong> for them, expecting others to bear the cost while still enjoying the benefits. This leads to an under-provision of these goods.<\/p>\n\n\n\n

Why Does the Free-Rider Problem Occur?<\/strong><\/h4>\n\n\n\n
    \n
  1. Lack of Incentive to Pay<\/strong> \u2013 Individuals assume that whether or not they contribute, the good will still be provided.<\/li>\n\n\n\n
  2. Large Number of Beneficiaries<\/strong> \u2013 In a large group, it is harder to track individual contributions, making it easier for some to avoid paying.<\/li>\n\n\n\n
  3. Non-Excludability<\/strong> \u2013 Since no one can be denied access, there is no immediate consequence for not contributing.<\/li>\n<\/ol>\n\n\n\n

    Consequences of the Free-Rider Problem<\/strong><\/h4>\n\n\n\n
      \n
    • Market Failure<\/strong>: When too many people free-ride, the good may be underfunded or not provided at all.<\/li>\n\n\n\n
    • Inefficiency<\/strong>: Governments or organizations may struggle to fund essential public goods.<\/li>\n\n\n\n
    • Equity Issues<\/strong>: Those who pay end up shouldering the burden for non-payers.<\/li>\n<\/ul>\n\n\n\n

      Solutions<\/strong><\/h4>\n\n\n\n
        \n
      • Government Intervention<\/strong>: Taxes ensure everyone contributes.<\/li>\n\n\n\n
      • Voluntary Contributions & Donations<\/strong>: Used for services like Wikipedia and charities.<\/li>\n\n\n\n
      • Social Pressure & Incentives<\/strong>: Encouraging ethical participation.<\/li>\n<\/ul>\n\n\n\n

        In conclusion, the free-rider problem highlights the difficulty of providing public goods efficiently without external enforcement or incentives.<\/p>\n","protected":false},"excerpt":{"rendered":"

        The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible. The correct answer and explanation is : Answer: The free-rider problem occurs when individuals benefit from a good or service without contributing to its cost, particularly in cases where exclusion is difficult or impossible. Explanation: The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-199725","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/199725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=199725"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/199725\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=199725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=199725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=199725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}