Final answer:
The unwillingness of individuals to share in the cost of a public good is known as the Free-rider problem, which arises particularly with non-excludable and non-rivalrous public goods. It leads to a situation where the cost is borne by others who do contribute, while some benefit without contributing. So the correct answer is option B.
Step-by-step explanation:
The unwillingness of individuals to share in the cost of a public good is called the b) Free-rider problem. This economic issue occurs when people benefit from resources, goods, or services without paying for them, leading others to bear the cost.
It's especially prevalent in scenarios involving public goods, which are non-excludable and non-rivalrous in nature, meaning that individuals cannot be effectively excluded from using them, and one person's use does not reduce availability to others.
The concept is closely related to but distinct from issues such as the tragedy of the commons, where shared resources are overused and depleted, and the prisoner's dilemma, which highlights challenges in achieving cooperative outcomes when individuals act in their own self-interest. Various strategies to resolve collective action problems include monitoring and sanctioning free riders, privatizing the commons, or creating social solidarity to encourage contributions to public goods.