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

question 47

Multiple Choice

Which of the following is an example of the free-rider problem?

• A) Sarah works overtime while her co-workers opt for a traditional schedule.
• B) Tom listens to music on his local PBS radio station, but Tom does not contribute anything to PBS.
• C) Katie catches a swordfish in the ocean.
• D) Jethro buys a crayfish fishing licence that he refuses to share with his sister.
• E) John attends a lecture on investing in high-tech companies for which he paid $100 to hear.

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Definitions:

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level, holding all other factors constant.

Quantity Supplied

The total amount of a product that producers are willing to sell at a given price within a specific time frame.

Export

The act of sending goods or services from one country to another country for sale or trade.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.