People Who Receive the Benefit of a Good Without Contributing

question 178

Multiple Choice

People who receive the benefit of a good without contributing to its costs of production are called

• A) contributors in kind.
• B) free riders.
• C) frequent flyers.
• D) cost maximizers.

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Subsidies

Financial support extended by the government to stimulate an industry or reduce the prices of goods and services for consumers.

MBA Degree

A Master of Business Administration degree, a graduate-level education that focuses on the theoretical and practical aspects of business and management.

Externalities

Economic side effects or by-products that affect uninvolved third parties; can be negative (like pollution) or positive (like education benefits), and are not reflected in market prices.