Question

Which of the following terms is used in economics parlance to describe a person who receives the benefits of a good but avoids paying for it?

• A. Debtor
• B. Free Rider
• C. Willful Defaulter
• D. Ungrateful Beneficiary

Hint:

Public goods often suffer from free rider problem because individuals can benefit without contributing.

Answer 1

The Correct Option is B

Step 1: Economic Terms - Definitions.
- Free Rider: Someone who consumes a good or service without paying.
- Debtor: Someone who owes money.
- Willful Defaulter: Someone who deliberately avoids paying what they owe.
- Ungrateful Beneficiary: This is not an economic term.