Question

In a subdivision, all but one of the homeowners decided to pay for the services of a private security firm. The homeowner who didn't pay is a:

Select one:

a. forced rider.

b. free rider.

c. public divider.

d. private rider.

Answer 1

Option B.

• A free rider is an individual who doesn't pay for a good or a service or pay less but try to consume more than others who pay for the same goods and services.
• Here in the example, all the homeowners pay for the services provided by a private security firm. But one homeowner doesn't pay for the service provided by the firm as he gains the benefit from it without having to pay for it as the other home owner's have paid for the service.
• The homeowner can avail the service and can also avoid the cost of availing it. Hence he is said to be a free rider.