A product or service for which people do not have to pay to consume or use is known as a __________ good.
A.
free-rider
B.
externality
C.
private
D.
public
The correct answer is D. public good. A public good is a product or service that is non-excludable and non-rivalrous in consumption. This means that once it is provided, individuals cannot be excluded from using it, and one person's use does not diminish its availability for others. Examples of public goods include street lighting, national defense, and public parks.
To arrive at this answer, you can eliminate options A, B, and C. A free-rider refers to someone who benefits from a public good without paying for it. An externality is a consequence of an economic activity that affects third parties without being reflected in the cost or price involved. Private goods are the opposite of public goods and are excludable and rivalrous in consumption.
Therefore, the correct answer is D. public.