Common Resources

Question 1

Are common resources excludable

Are they rival

Answer 1

Non excludable

Are rival

Question 2

What is tragedy of the commons

Answer 2

When resources are shared, individual act in their own self-interest, which ultimately depleted or spoils the shared resource for everyone

Question 3

How can governments stop the tragedy of the commons

Answer 3

Reducing use of the common resource by regulation or taxation eg people who use the lake must pay to enter

Or turn the common resource into a private good eg like they were about to do with water charges

Question 4

Example of a modern tragedy of the commons

Answer 4

Environmental degradation
Congested roads
Overfishing