Free Riders Enjoy

question 64

Multiple Choice

Free riders enjoy:

• A) negative externalities from others' choices to pay for a good.
• B) positive externalities from others' choices to pay for a good.
• C) positive externalities transferred from consumers who receive subsidies.
• D) positive externalities from a good they choose to buy themselves.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, potentially maximizing revenue by targeting individual willingness to pay.

Insurance Company

A business entity that provides financial protection against losses or damages in exchange for premium payments.

Airline Tickets

Documents or electronic records issued by airlines that confirm an individual’s right to a seat on a flight from one destination to another.

Regulatory Commission

A government agency or body responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity.