Multiple Choice
Which of the following is the best example of a 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 is the best illustration of the tragedy of the commons?
A
A consumer choosing not to pay for a public good but still benefiting from it
B
A government imposing a tax on luxury goods
C
Overfishing in a public lake leading to depletion of fish stocks
D
A company polluting its own private land
Verified step by step guidance1
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.
Identify the key elements of the tragedy of the commons in each option: look for a shared resource that is being overused or depleted because it is accessible to all without exclusive ownership.
Evaluate the first option: a consumer benefiting from a public good without paying is an example of the free-rider problem, which is related but not the tragedy of the commons.
Evaluate the second option: a government imposing a tax on luxury goods is a policy action and does not illustrate overuse or depletion of a shared resource.
Evaluate the third and fourth options: overfishing in a public lake shows depletion of a shared natural resource due to individual overuse, which matches the tragedy of the commons, whereas polluting private land involves private property and externalities but not a common resource.
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