Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 11 - Part IV - Public Goods and Common Resources - Quick Check Multiple Choice - Page 229: 6

Answer

C) Overused in the absence of government

Work Step by Step

Common resources are non-excludable but rivalrous, meaning that individuals only consider their own benefits/costs in using common resources but not the impact of their use on others. Without governments to regulate usage and access to common resources, the tragedy of the Commons means that such resources are overused.
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