Which of these situations would give rise to the free-rider problem?

studying for a test
National Public Radio
a recycling program
group work in college
a bank providing a "free" checking account
bike-share programs

Solutions

Expert Solution

Studying for returns to the person who is making the effort to study. There is no benefit possible to the third party. Thus, there is no free rider problem.

National Public Radio which is operated by the government benefits the citizen of the country without paying for it. This is a problem of free ride

A recycling program benefits the environment and thus affects the citizens positively. Thus, citizens mostly free rides on the municipality or the government for this benefit. This refers to the free ride problem.

Students in the group who work in colleges often free ride on the most intelligent person in the group. This problem refers to the free rider problem.

Bank provides the free checking account only to its customers. It either facilitates the customer or the bank. No third party can be benefited by this service. Thus, there is no free rider problem.

Bike share program helps the citizens. It is not a free ride as people have to pay to facilitate these services.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Define Free Rider Problem and Moral Hazard as they pertain to health insurance coverage. Give examples...

Define Free Rider Problem and Moral Hazard as they pertain to health insurance coverage. Give examples of each.

Please explain the difference between "free-rider problem” and "tragedy of commons". Give an example for each...

Please explain the difference between "free-rider problem” and "tragedy of commons". Give an example for each one of them.

explain public goods and the free rider problem and provide examples

Draw free body diagrams for the motorcycle rider for each of the following situations. Label all...

Draw free body diagrams for the motorcycle rider for each of the following situations. Label all your force vectors clearly, and draw them in a self-consistent manner – that is, forces that cancel (sum to zero) should be drawn so that they cancel on your diagram. In all diagrams, assume the motion is towards the right. A motorcycle rider falls off her Harley while attempting to pop a wheelie. The motorcycle rider skids along the surface of a horizontal road,...

Is there a free rider problem (market failure) associated with education in the United States and...

Is there a free rider problem (market failure) associated with education in the United States and how can it be corrected

What is the problem of a free rider, and how does it relate to public goods?...

What is the problem of a free rider, and how does it relate to public goods? Provide an example of such a problem, and make a couple suggestions on how to mitigate the free rider issue.

Question: 1. What is the free rider problem and how does society can overcome the free...

Question: 1. What is the free rider problem and how does society can overcome the free rider problem? Give at least two examples. 2. What is the difference between private and social cost? Provide an example and explain in details. 3. Give an example and explain in detail the differences between social and private benefits.

Question