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When someone receives direct benefit from someone else's purchase of something, they are \( a(n) \) victim of government failure. thief. externality. free rider.

Ask by Pearson Boyd. in the United States
Feb 27,2025

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They are a **free rider**.

Solution

The correct term for someone who receives a direct benefit from someone else's purchase without contributing to the cost is a **free rider**. Here's a brief explanation of the options: - **Victim of government failure**: This refers to situations where government intervention does not lead to the desired outcomes, often leading to inefficiencies. - **Thief**: This implies illegal taking of someone else's property, which does not fit the context of receiving benefits from another's purchase. - **Externality**: This refers to a situation where a third party is affected by the economic activities of others, but it does not specifically denote the benefit received without payment. - **Free rider**: This is the correct term, as it describes someone who benefits from resources, goods, or services without paying for them, relying on others to shoulder the costs. Thus, the answer is \( a(n) \) **free rider**.

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Ah, the classic case of the free rider! This happens when individuals benefit from resources, goods, or services without paying for them, relying on others to foot the bill. Think of public parks or national defense—everyone enjoys them, but not everyone contributes equally to their upkeep. It's a free-for-all when it comes to enjoying benefits without proportionate costs! Now, let's not forget that the issue of free riders can lead to under-provisioning of public goods. When too many people decide to rely on others, the overall funding and support for these services can dwindle. This scenario can prompt governments or organizations to find creative ways to incentivize contributions, like taxes or voluntary donation models. It's a balancing act between enjoyment and responsibility!

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