In economics, a free rider is the term used for a person who a. receives the benefit of a good without contributing to its costs of production. b. purchases an item during a "buy one, get one free" sale. c. lives in a town in which the city provides free bus service. d. pays for exactly what they receive.

Question

Candy

Social Studies

30 April, 10:11

In economics, a free rider is the term used for a person who a. receives the benefit of a good without contributing to its costs of production. b. purchases an item during a "buy one, get one free" sale. c. lives in a town in which the city provides free bus service. d. pays for exactly what they receive.

+2

Answers (1)

Know the Answer?

Karter Dean · Answer 1

Answer: A. receives the benefit of a good without contributing to its costs of production

Explanation: In Economics, a free rider is someone who benefits from goods and/or services without expending effort or paying for said resources. They consume goods without paying for their use. This is a type of market failure because while not paying for the goods or services and utilizing them, those resources may become overused, underproduced and/or degraded.

Free riding therefore is a problem of economic inefficiency as it usually leads to under-production or over-consumption of a good or resource. The big question about free riding is how to limit the practise and the effects it usually has on the society.