In the following statements, who is a free rider ?

A. Andy is reading a book named "Mission to Mars."

B. The U. S. government has announced a 21 percent defense spending increase.

C. Nick buys groceries from Safeway because it's closer to his home.

D. Ted does not pay taxes but uses roads and highways.

Question

Business

Gilmore

8 August, 03:23

In the following statements, who is a free rider ?

A. Andy is reading a book named "Mission to Mars."

B. The U. S. government has announced a 21 percent defense spending increase.

C. Nick buys groceries from Safeway because it's closer to his home.

D. Ted does not pay taxes but uses roads and highways.

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Answers (1)

Know the Answer?

Lola Walls · Answer 1

Option (D) is correct ...

Explanation:

Among all these examples, a free rider is a person who does not pay taxes for taking benefits of the roads and highway but he does't pay anything.

A free rider is a person who doesn't pay anything but taking all the benefits.

The benefits received by the free rider are equal to those who are paying for it.

Free rider problem mostly occurred in case of public goods as compared to the private goods.

In the following statements, who is a free rider ?A. Andy is reading a book named "Mission to Mars."B. The U. S. government has announced a 21 percent defense spending increase.C. Nick buys groceries from Safeway because it's closer to his home.D. Ted does not pay taxes but uses roads and highways.