Question

In the following​ statements, who is a free rider​?

A. Andy is reading a book named​ "Mission to​ Mars."
B. The U.S. government has announced a 21 percent defense spending increase.
C. Nick buys groceries from Safeway because​ it's closer to his home.
D. Ted does not pay taxes but uses roads and highways.

Answer 1

Option (D) is correct..

Step-by-step explanation:

Among all these examples, a free rider is a person who does not pay taxes for taking benefits of the roads and highway but he does't pay anything.

A free rider is a person who doesn't pay anything but taking all the benefits.

The benefits received by the free rider are equal to those who are paying for it.

Free rider problem mostly occurred in case of public goods as compared to the private goods.