A free rider is a person who ?
Correct answer: A. receives the benefits of a good but avoids paying for it.
- A. receives the benefits of a good but avoids paying for it.
- B. pays for a good but fails to receive any benefit from the good
- C. fails to produce goods but is allowed to consume goods.
- D. produces a good but fails to receive payment for the good
Explanation
A free rider enjoys the benefits of a good without contributing to its cost. This problem is especially common with public goods because non-payers cannot easily be excluded.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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