When solving collective action problems, a major barrier is the free rider problem, which occurs when actors
a. reap the benefits without contributing any effort.
b. harvest the resources of other nations.
c. increase their consumption in a sudden and dramatic way.
d. are forced to live with control and domination.
a. reap the benefits without contributing any effort.
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Answer the following questions true (T) or false (F)
1. One consequence of adverse selection in the market for used cars is that most used cars sold will be lemons. 2. Insurance companies use deductibles and coinsurance to reduce moral hazard. 3. Under current U.S. tax laws, individuals do not pay taxes on health insurance benefits they receive from their employers.
An externality exists when the cost or benefit resulting from some activity or transaction is experienced by parties external to the activity or transaction.
Answer the following statement true (T) or false (F)