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Managerial Economics · End Term · 13 Sept 2026 · May 2026 term · Set S2

Question 42: Which of the following best describes the free rider pro…

Question 42

+1 markOne correct option

Which of the following best describes the free rider problem?

  1. A

    When individuals contribute more than their fair share to a public good

  2. B

    When individuals benefit from public good without contributing to its cost

  3. C

    When firms charge excessively high prices for public goods

  4. D

    When governments provide too many private goods.

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Correct answer

  • B

    When individuals benefit from public good without contributing to its cost

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Question 42 of 43 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 13 Sept 2026, in the May 2026 term (Managerial Economics 13 Sep 26 (Session 2)). It carries 1 mark.

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