A free rider is someone who benefits from others' contributions to a public good without contributing themselves. This is a problem because if too many people free ride, the public good may be underprovided, leading to market failure.

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A Free Rider

Question 60

Multiple Choice

A free rider:

A) contributes little or nothing to a public good while benefiting from others' contributions.
B) prevents a market failure.
C) contributes little or nothing to a public good, but also does not benefit from others' contributions.
D) creates both positive and negative externalities.

Correct Answer: