There are apartments in Perth whose rooftops overlook Subiaco Oval.On game day you can find free riders on the roof enjoying _____.
A)beer
B)free property rights
C)an externality
D)a public good
E)excess utility

Question

Quizplus · Accepted Answer

The situation described is an example of an externality, where the enjoyment of the game by others creates a positive or negative impact on the individuals on the rooftop. They are not paying for this view, but they are benefiting from it without contributing to its cost, which is being borne by the stadium and game attendees. The other options, such as beer or free property rights, are not relevant or sufficient to explain the situation. The concept of excess utility is not applicable here, as it relates to the satisfaction or usefulness of a good or service beyond its expected value, which is not the case for the rooftop view.

There Are Apartments in Perth Whose Rooftops Overlook Subiaco Oval