- Which food contains a major allergen recognized by the FDA?
a. Chili powder
b. Vegetable oil
c Cooked zucchini
d. Spaghetti noodles - We mentioned in lecture that free riders are an especially bad problem with
Group of answer choices
a. public goods
b. common resources
c. private goods
d. club goods
The Correct Answer and Explanation is :
Question 1: Which food contains a major allergen recognized by the FDA?
Correct Answer:
d. Spaghetti noodles
Explanation:
The FDA recognizes eight major food allergens responsible for most allergic reactions: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, and soybeans. Among the given options, spaghetti noodles often contain wheat, one of these major allergens.
- Chili powder: While it may cause reactions in people with sensitivities to certain spices, it is not a recognized major allergen.
- Vegetable oil: Unless derived from a major allergen source (e.g., peanut oil), it is generally not an allergen.
- Cooked zucchini: Zucchini is not a recognized major allergen.
- Spaghetti noodles: Contain wheat, which is one of the FDA’s recognized major allergens. Individuals with wheat allergies or celiac disease (a gluten intolerance) must avoid such products.
Question 2: Free riders are an especially bad problem with:
Correct Answer:
a. Public goods
Explanation:
Free rider problems occur when individuals benefit from resources, goods, or services without paying for them, which leads to underfunding or overuse of these goods. Public goods are particularly susceptible because they are non-excludable (people cannot be easily excluded from use) and non-rivalrous (one person’s use does not diminish availability for others). Examples include national defense, public parks, and street lighting.
- Public goods: Since people cannot be excluded from enjoying these goods, there is little incentive for individuals to contribute to their provision (e.g., taxes for street lighting). This leads to a situation where everyone waits for someone else to pay, resulting in an undersupply.
- Common resources: While overuse (the “tragedy of the commons”) is a concern, they are not purely non-excludable because access can sometimes be restricted.
- Private goods: These are excludable and rivalrous (e.g., a sandwich), so free rider problems don’t arise since non-payers can be excluded.
- Club goods: These are excludable but non-rivalrous (e.g., subscription services), and free rider problems are limited because access can be controlled.
The free rider problem in public goods highlights a major challenge in economics: ensuring adequate provision of essential services without exploitation of shared benefits. Governments typically address this issue by funding public goods through taxation.