There are apartments in Perth whose rooftops overlook Subiaco Oval. On game day you can find free riders on the roof enjoying _____.
A) beer
B) free property rights
C) an externality
D) a public good

Question

Quizplus · Accepted Answer

The presence of free riders on the rooftop enjoying the game day atmosphere is an example of an externality, where one person's actions (in this case, enjoying the view of the game) have an impact on others (the people who live in the apartments and have a view of the rooftop). This is because the enjoyment of the game day atmosphere is not confined to just the individual on the roof but also affects the individuals living in the apartments.

There Are Apartments in Perth Whose Rooftops Overlook Subiaco Oval