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What is a Free Rider?

Updated: 4/28/2022
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8y ago

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A Free Rider is anyone who benefits from resources without having to work for them. In today's world free riders can and do include those who abuse welfare, insurance defrauders, and thieves.

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Q: What is a Free Rider?
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How would you describe the free-rider problem?

The term "free-rider" describes an individual that receives goods, services, or resources that they do not pay for. Free-riders present a problem if resources are overused or degraded, or an under-provision develops of goods or services.


Which is trait shared by all public goods?

A free rider problem


What is a trait shared by all public goods?

A free-rider problem.


The free-rider problem occurs because?

The term "free-rider problem" refers to a situation in which benefits given to those who do not pay for them result in some decrease in the quality or quantity of resources, goods, or services available to the general public. The "free-rider problem" is an economic theory, though it is also referred to in political science and social psychology.


What is a 'free rider' in economics?

A free-rider in economics is someone who consumes more than what society allocates to them. This is not to be confused with "what they contribute to society", but consuming more that they are entitled to. Take for example, A room of 20 people. If everyone in the room is vaccinated to prevent an influenza infection, but one person refuses to be vaccinated. This one person will benefit from everyone else's vaccination by not being exposed to the virus, but they not entitled to this protection. In economics, this loner is considered a free rider. They create a potentially dangerous situation. When the vaccination has worn off, this free rider who refused to become vaccinated will reintroduce this virus. Bringing back the infection. This is why malaria is very difficult to combat in some parts of the world like Africa. Not because one person choses to be a free rider, but because they do not have access to the right treatment at the right time. So one can be a free rider by choice, or by necessity.