In the context of public goods, the free-rider problem arises because:
A. Public goods are rivalrous
B. Public goods are excludable
C. Individuals can benefit without paying
D. Markets always provide public goods efficiently
Answer: Option C
Solution (By JKSSB Mock Tests)
Because public goods are non-excludable, individuals have an incentive to free-ride — enjoy the benefits without contributing to the cost — leading to under-provision by the market.
Explanation:
Data trusts and data commons are emerging institutional models that seek to govern data as a shared resource, with trustees or collective bodies responsible for managing access and use in accordance with the interests of the data subjects or community.
Explanation:
Present bias describes the common tendency for people to place disproportionately greater weight on immediate rewards relative to delayed rewards, leading to time-inconsistent preferences and self-control problems.
No comments yet. Be the first to start the discussion!