Suppose one person buys a copy of Consumer Reports and gives away free copies to all who request one.This is an example of
A) the free rider problem.
B) moral hazard.
C) adverse selection.
D) economies of scale.

Question

Quizplus · Accepted Answer

The free rider problem occurs when individuals consume a good without paying for it, benefiting from the good without contributing to its cost. In this scenario, those who receive free copies of Consumer Reports are benefiting from the information without paying for it, exemplifying the free rider problem.

Suppose One Person Buys a Copy of Consumer Reports and Gives