Which of the following is an example of free-riding?Select one:a. Nobody volunteers for a...

Which of the following is an example of free-riding?

Select one:

a. Nobody volunteers for a charity that helps other people.

b. A person contributes to the common good only because of a sense of duty.

c. A person uses a car belonging to someone else without permission.

d. One member of a group contributes nothing to a group project.

Expert Solution

Free rider is that person who gets benefits without any payment due to the action of other parties.

The public good is non-rival and non-excludable in nature. The cost of providing public good is very high and there is free rider problem. This is the reason why a market system fails to produce an efficient level of public good.

Hence when one member of a group contributes nothing to a group projects but get the benefit of the project, then it is an example of free rider.

Hence option d is an example of free rider problem.

Rahul Sunny answered 2 years ago

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