Which of the following is an example of the free-rider problem?
A)a neighbour refuses to help pay for a street light that is intended to help reduce crime
B)a law enforcement officer receives a uniform from the police department
C)a student refuses to buy a college catalog
D)a fast food employee is provided food at work

Question

Quizplus · Accepted Answer

The free-rider problem refers to the situation where individuals benefit from a public good without contributing to its cost. In this case, the neighbour benefits from the street light but refuses to pay for it, making it harder for other residents to finance the street light. The other options do not illustrate the free-rider problem because in option B, the law enforcement officer is receiving a uniform as part of their job, in option C, the student simply chooses not to purchase a catalog, and in option D, the fast food employee is receiving food as part of their compensation for work.

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