Who is described as a free rider in economic terms?

Multiple choice question for Public Goods. Select an option, then review the explanation below.

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Someone who enjoys the advantages of a good without contributing to its cost.An individual who pays for a good but does not gain any benefit from it.A person who consumes goods without participating in their production.A producer who creates a good but does not receive compensation for it.

Explanation

A free rider is an individual who benefits from a good or service without paying for it, effectively avoiding the associated costs.

Practice related questions from the same subject.

1.What term describes a good from which individuals can be prevented from accessing or using it?
2.Which of the following best illustrates a common resource?
3.Which type of good is impacted by a negative externality in a way that reduces market efficiency?
4.Which type of good does a positive externality influence market efficiency similarly to?
5.Why do private markets struggle to supply public goods effectively?

Who is described as a free rider in economic terms?

Explanation

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