A community decides to build a public park that will benefit everyone. However, some residents choose not to contribute to the funding, expecting others to cover the costs. What economic principle does this scenario illustrate, and what might be the consequence of this behavior?

This scenario illustrates the economic principle known as the "free rider problem. " A public park is considered a public good, meaning it is available for everyone to use, and it is difficult to exclude anyone from enjoying it. When some residents choose not to contribute to funding the park, they expect others to pay for it while still benefiting from its use. This can lead to a situation where not enough money is raised to build or maintain the park, as people may rely on others to shoulder the costs. For example, if a community needs $10,000 to create the park but only raises $6,000 because many residents opt out, the park may never be built, leaving everyone, including non-contributors, without this valuable resource.