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

question 5

Multiple Choice

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

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

---

Definitions:

Above-Market Wages

Above-market wages refer to compensation rates higher than the average or standard for a particular job or industry.

Pay Scale

A structure that determines the compensation levels for different positions within an organization, often reflecting experience, education, and responsibility.

Employee Compensation Strategy

A plan or approach used by employers to determine the mix of wages, salaries, and benefits the employees will receive.

Compensation Survey Firms

Companies that specialize in collecting and analyzing data on compensation rates to provide benchmarking and market rate information.