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Which of the Following Scenarios Illustrates the ―Free-Rider Problem‖

Question 87

Multiple Choice

Which of the following scenarios illustrates the ―free-rider problem‖?


A) Three classmates working on a group project all know they will receive the same grade and one of the students contributes very little effort into the project.
B) Local residents on a small island pay taxes to have its beaches cleaned. Tourists visiting the island leave garbage on the beaches because they know that the beaches are cleaned regularly.
C) The servers at a restaurant agree to split all of the tips equally and some diners receive bad service.
D) Each of these scenarios illustrates a form of free riding.

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