dave loves to swim. he finds that the more people there are at the lake, the more congested it becomes, making it less enjoyable to swim. this is an example of choose one: a. the overflow principle. b. the tragedy of the commons. c. external benefits. d. the free-rider problem

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26-10-2022
Social Studies

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dave loves to swim. he finds that the more people there are at the lake, the more congested it becomes, making it less enjoyable to swim. this is an example of choose one: a. the overflow principle. b. the tragedy of the commons. c. external benefits. d. the free-rider problem

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Tundexi Tundexi · Answer 1 · 2022-11-01T12:02:37-04:00

As Dave finds that the more people there are at the lake, the more congested it becomes and making it less enjoyable to swim, this is an example of the Free Rider Problem.

What Is the Free Rider Problem?

In economics, the free rider problem tells us about the burden on a shared resource that is created by its use or overuse by the people who are not paying their fair share for it or aren't paying anything at all.

It is considered an an issue in economics and an example of a market failure because it is about an inefficient distribution of goods or services that occurs when some individuals are allowed to consume more than their fair share of the shared resource or pay less than their fair share of the costs.

This problem can occur in any community that are large or small. In an urban area, the city council can debate whether and how to force suburban commuters to contribute to the upkeep of its roads and sidewalks or the protection of its police and fire services. Another example is when public radio or broadcast station devotes airtime to fundraising in hopes of coaxing donations from listeners who are not contributing.