Which of the Following Illustrates the Principle of Free Riding

question 137

Multiple Choice

Which of the following illustrates the principle of free riding?

• A) a real estate agent who is consistently late to appointments
• B) a student who uses scholarship money to pay all college tuition and fees
• C) a member of a club who refuses to do fund-raising for club activities
• D) Each of these is an example of free riding.

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Definitions:

Income

Payment obtained, regularly, for services rendered or from capital investments.

Preferences

In economics, refers to the subjective tastes and desires of consumers that influence their choices and demands.

Demand

The desire coupled with the purchasing power for specific goods or services in a given economic marketplace.

Income

Money received on a regular basis from work, investments, business, etc., used to fund a person’s living expenses.