Question

Which of the scenarios are examples of free riding? Bob can pay to support his local public radio station, which depends on donations to be as effective as possible. 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. 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. 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 . 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

Answer:

Bob can pay to support his local public radio station, which depends on donations to be as effective as possible. 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

Explanation:

Free riding is a form of market failure where a person who benefits from a good or service doesn't pay for it.

Bob enjoys the radio but doesn't support it and Jim doesn't participate in the group project but expects to earn a good grade; these are examples of free riding.

Karl doesn't benefit from the street light and doesn't pay; hence, he is not free riding.

I hope my answer helps you.