Question

when rick uses a common resource and diminishes another persons enjoyment of it, he creates:

○ a free rider

○ an externality

○ a non - renewable resource

○ general knowledge

Explanation:

• A free rider is someone who benefits without contributing, not matching the scenario.
• An externality is a cost/benefit affecting a third - party not involved in the transaction. Rick using a common resource and reducing another’s enjoyment is a negative externality.
• A non - renewable resource is a type of resource (like oil), not related to the impact on others’ enjoyment.
• General knowledge is unrelated to resource use and its impact on others.

Answer:

B. an externality