Which of the following is an example of the free-rider problem?
A)Both Fred and Wilma receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care.
B)Elmer receives a free lunch from the local "Meals on Wheels" program because of his low monthly income.Yet his next door neighbor, Dorothy, is not eligible for the free lunch.
C)Max owns Fido, a large dog who barks whenever anyone walks near his house.Sally lives next to Max, and Fido's barking can be heard whenever anyone walks near her house, too.Thus, Sally receives free protection from burglars because of Fido's barking.
D)Both David and Carolyn can enjoy a beautiful sunset from the porches of their adjacent houses, yet neither of them pays to watch the sunset.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals benefit from resources or services without paying for them. In option C, Sally benefits from Fido's barking, which provides protection, without contributing to the cost of owning or maintaining the dog.

Which of the Following Is an Example of the Free-Rider