Multiple Choice
Which of the following environmental issues is not an example of the tragedy of the commons?
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8. The Types of Goods
The Free Rider Problem and the Tragedy of the Commons
Multiple Choice
Which of the following best illustrates the concept of the tragedy of the commons?
A
Fishermen overharvesting fish from a public lake, leading to depletion of the fish population.
B
A company polluting a river because it does not have to pay for the environmental damage.
C
A person enjoying a public fireworks display without paying for it.
D
A government providing national defense to all citizens regardless of individual contributions.
Verified step by step guidance1
Step 1: Understand the concept of the tragedy of the commons. It occurs when individuals, acting independently according to their own self-interest, overuse and deplete a shared resource, leading to long-term collective loss.
Step 2: Identify the key elements in each option: a shared resource, individual incentives to overuse it, and the resulting depletion or degradation of that resource.
Step 3: Analyze the option 'Fishermen overharvesting fish from a public lake.' Here, the fish population is a common resource, and each fisherman benefits from catching more fish, but collectively they risk depleting the fish stock.
Step 4: Compare this with other options: pollution without paying is an externality issue, enjoying a public fireworks display without paying is a free-rider problem, and national defense provision is a public good scenario without depletion of a resource.
Step 5: Conclude that the tragedy of the commons is best illustrated by the overuse and depletion of a shared natural resource, as in the fishermen example.
