Consider the following statements about free-riders:
(A) Users of a public good who do not pay for it are known as free-riders.
(B) Free-riders arise because public goods are non-excludable.
(C) Free-riders arise because the consumption of public goods is rivalrous.
(D) Because it is difficult to collect fees, private enterprise will in general not provide public goods.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A), (B) and (D) only
Free-riders enjoy a public good without paying. They exist because no one can be excluded.
(A) Users of a public good who do not pay for it are known as free-riders. — Correct. This is the meaning of the term.
(B) Free-riders arise because public goods are non-excludable. — Correct. Non-payers cannot be kept out.
(C) Free-riders arise because the consumption of public goods is rivalrous. — Incorrect. Public goods are non-rivalrous, and free riding comes from non-excludability.
(D) Because it is difficult to collect fees, private enterprise will in general not provide public goods. — Correct. So the government provides them.
NCERT (2026-27): “Allocation Function of Government Budget … However, in case of public goods, there is no feasible way of excluding anyone from enjoying the benefits of the good. That is why public goods are called non-excludable. Even if some users do not pay, it is difficult and sometimes impossible to collect fees for the public good. These non-paying users are known as ‘free-riders’. …” “Summary … These make it difficult to collect fees for their use and private enterprise will in general not provide these goods. Hence, they must be provided by the government.” |