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

question 216

Multiple Choice

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

• A)Both Zoe and Zach receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care.
• B)Alfred receives a free lunch from the local "Meals on Wheels" program because of his low monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch.
• C)Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking.
• D)Sam purchases a burger at a fast food restaurant and gets a second burger free because the restaurant is having a buy one, get one free sale.

Identify the components and costs included in acquiring assets.

Describe how the purchase costs of lump-sum assets are allocated.

Explain the financial impacts and accounting treatments for repairs and improvements on asset values.

Understand the accounting procedures for asset disposals including gain or loss calculations.

---

Definitions:

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Support Cells

Cells that provide structural, nutritional, or other types of support to the neurons in the nervous system.

Chemical Functioning

The processes and reactions by which chemicals interact and transform within a system.

Carbon

A chemical element with symbol C, known as the basic building block of life, found in all organic compounds.