A free rider in economic theory is someone who does not contribute toward covering the cost of goods which he desires because he
A) has a comparative advantage in defraying the cost of other goods.
B) knows his paying or not paying will make no difference in their availability to him.
C) regards all such costs as deadweight costs.
D) regards all such costs as transaction costs.
B
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Differentiate between the quantity effect and price effect of a price cut by a monopoly
What will be an ideal response?
Assume the price of good Y with its quantity measured on the vertical axis is $100 and the price of good X with its quantity measured on the horizontal axis is $10 . If the consumer's budget is $500, then the absolute value of the slope of the budget line is:
a. 500. b. 1/10. c. 10. d. 100.
The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets describes:
a. socialism. b. communism. c. consumer sovereignty. d. the aspirations of Karl Marx.
Which of the following would constitute the strongest evidence of employment discrimination against female employees?
a. The average wage of female workers is lower than the average wage of males. b. The average wage of female employees is lower than the average wage of males with similar productive characteristics. c. The mean number of years of schooling of female workers is lower than that of males. d. The average hours worked by female employees is less than the average hours worked by males.