Asked by Ashley Pillatos on May 06, 2024
Verified
The drop-in-the-bucket problem is intrinsic to public goods.
Drop-in-the-bucket Problem
A metaphorical expression indicating a situation where the effort or resources are too insignificant to make a noticeable difference in a larger context.
Public Goods
Goods that are non-excludable and non-rivalrous, meaning they can be consumed by everyone and one person's use doesn't reduce availability to others.
- Identify and elucidate the drop-in-the-bucket issue.
Verified Answer
CR
Cristina ReneeMay 09, 2024
Final Answer :
True
Explanation :
The drop-in-the-bucket problem refers to the phenomenon where an individual's contribution to a public good is so small relative to the total needed that the individual does not perceive their contribution as making a significant difference. This can lead to underinvestment in public goods since individuals may not see the value in contributing.
Learning Objectives
- Identify and elucidate the drop-in-the-bucket issue.