What is meant by free ridership?

• A. People who pay for public goods
• B. Free riders who can't be stopped from using public goods
• C. Individuals that contribute to public services
• D. People who are equally taxed for services

Answer: (B)

Free ridership refers to the concept where individuals benefit from resources, goods, or services without paying for their fair share of the costs associated with them. This situation often arises with public goods, which are typically non-excludable and non-rivalrous. In other words, once a public good is provided, such as clean air or national defense, individuals cannot be easily prevented from using it, even if they do not contribute to its funding.

The choice highlighting free riders who can't be stopped from using public goods accurately captures this essence. These individuals can enjoy the advantages of public goods without incurring any costs, leading to a challenge in funding and maintaining these goods, as those who do contribute may feel less incentive to do so if they know others will still benefit without paying.

In contrast, individuals who pay for public goods would not qualify as free riders, as they are contributing to the system. Similarly, those who contribute to public services or are equally taxed for services do not align with the notion of free ridership, as their involvement indicates they are partaking in the contributions that support these public goods.