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AP® Microeconomics

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Market Failures: Free Rider

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Which of the following best exemplifies a free rider?

A

A boss buys lunch for one of her salespeople as a reward for the high sales he made the previous week.

B

A car dealership offers free oil changes for the lifetime of all cars purchased.

C

Three homeowners contract to have their yards treated for mosquitoes, and this eliminates the mosquitoes in their neighbors' yards as well.

D

A company makes creams and lotions from kudzu plants that it can harvest locally for free.

E

An employee takes longer breaks and lunches when the owner of the store where he works is out of town.