A group of university students toys coconuts from farmers' markets. The students consume the meat of the coconuts for food and use the shells to make sculptures. These sculptures are placed in a public park that any student can visit. The park sustains itself through students' donations. Some individuals have no incentive to donate to the park and will instead depend on those who do donate. Which of the following is this is an example of?

The free-rider problem

A negative externally

Efficient allocation of coconuts

Overuse of coconuts

Question

Business

Arroyo

22 April, 02:41

A group of university students toys coconuts from farmers' markets. The students consume the meat of the coconuts for food and use the shells to make sculptures. These sculptures are placed in a public park that any student can visit. The park sustains itself through students' donations. Some individuals have no incentive to donate to the park and will instead depend on those who do donate. Which of the following is this is an example of?

The free-rider problem

A negative externally

Efficient allocation of coconuts

Overuse of coconuts

+5

Answers (1)

Know the Answer?

Denise Maldonado · Answer 1

Answer: The free - rider problem

Explanation:

The free-rider problem is one off the type of economical issue that cause the market failure problem due to the unsystematic distributing of the various types of goods resources and also the services.

This type of problem is basically occur due to the overuse or degradation of the products and the resources.

According to the given question, the free rider problem is one of the example that best illustrating the given scenario. The main cause of the free rider problem is due to the unequal use of the resources and also the public goods without paying for their particular share.

Therefore, The free-rider problem is the correct answer.