Question

Which of the scenarios are examples of free-riding?

a. Bob can pay to support his local public radio station, which depends on donations to be as effective as possible.
b. Bob listens to the radio station several hours per day but never donates since he suspects that other people will donate enough to keep the station on the air.
c. Drew always buys the lunch special for $ 5 at the restaurant across the street from where he works. If he decided to eat at the restaurant after 3: 00 p.m., however, he would be unable to get the lunch special, and would instead have to pay $ 10 for the same food.
d. Jim is working on a group project for a class in which he wants a high grade. However, since the grades are assigned to the group as a whole and he knows that the other group members will pick up most of the extra work, Jim calls in sick and plays video games on his Dream Station 64.
e. Karl never drives at night and gets no benefit from street lamps at all. Street lamps are nonexcludable and nonrival in consumption. When the community group tries to collect money to build street lamps, Karl does not donate any money.

Answer 1

Examples of free-riding can be found in scenarios b, d, and e, where individuals benefit from public goods without contributing. Option b, d, e.

Step-by-step explanation:

Free-riding refers to the behavior of individuals who benefit from a public good without contributing to its support or provision. In the given scenarios, examples of free-riding can be found in options b, d, and e.

In option b, Bob listens to the radio station without donating, assuming others will donate enough to keep the station on the air. This is an example of free-riding.

In option d, Jim avoids doing the extra work in a group project and expects other group members to pick up the slack. This is also an example of free-riding.

In option e, Karl benefits from street lamps that are nonexcludable and non-rival, but he does not contribute when the community group tries to collect money to build street lamps. This is another example of free-riding.

So Option b, d, e are correct answer.

Answer 2

b. Bob listens to the radio station several hours per day but never donates since he suspects that other people will donate enough to keep the station on the air.

. Jim is working on a group project for a class in which he wants a high grade. However, since the grades are assigned to the group as a whole and he knows that the other group members will pick up most of the extra work, Jim calls in sick and plays video games on his Dream Station 64.

Step-by-step explanation:

Free riding is when a person enjoys the benefit of a good or service but doesn't pay for it. This is a form of market failure.

Bob listens to the radio but doesn't donate and Jim would benefit from the grade given to the group but doesn't participate. These are instances of free riding.

Karl doesn't drive at night and so doesn't enjoy the benefits of the street light and doesn't pay. This is not an instance of free riding.

I hope my answer helps