Which of the Following Is an Example of the Free

question 29

Multiple Choice

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

• A)an elected official accepting bribes from an interest group
• B)an elected official relying on information from lobbyists
• C)a union bargaining with management for higher wages in an open shop state
• D)an environmental group disagreeing on what policy goals to pursue

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Definitions:

Tariff

A tax imposed on imported goods, often to protect domestic industries or to generate revenue.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they do sell it for, representing their profit.

Free Trade

The unrestricted exchange of goods and services between countries without the imposition of tariffs, quotas, or other trade barriers.

Domestic

Relating to or occurring within a particular country; not foreign or international.