The _____ problem arises when individuals benefit from a public good without contributing to its cost, leading to inefficient allocation and potential underproduction of the good.

The free rider problem happens when people enjoy the benefits of a public good without paying for it. Public goods, like clean air or street lighting, are available for everyone to use, which means that some individuals may choose not to contribute to their costs. This can lead to fewer resources being available for these goods because if too many people rely on others to pay, then there may not be enough funding for their maintenance or improvement. For example, if everyone assumes that someone else will pay for a community park, it might not get built, leaving everyone without that valuable space. As a result, the free rider problem can cause important goods and services to be underproduced, affecting the whole community.