One economically efficient way to eliminate the Tragedy of the Commons is toGroup of answer choicestax the owners of the resource.prevent anyone from using the resource.reduce the marginal social benefit of the resource.establish private ownership of the resource.
Question
One economically efficient way to eliminate the Tragedy of the Commons is toGroup of answer choicestax the owners of the resource.prevent anyone from using the resource.reduce the marginal social benefit of the resource.establish private ownership of the resource.
Solution
One economically efficient way to eliminate the Tragedy of the Commons is to establish private ownership of the resource.
Here's why:
-
The Tragedy of the Commons refers to the situation where individuals acting independently and rationally according to each one's self-interest behave contrary to the best interests of the whole group by depleting some common resource.
-
The idea is that each individual extracts as much benefit as they can from the resource, leading to its depletion, as they do not bear the full cost of their actions.
-
By establishing private ownership, the owner has an incentive to prevent overuse and depletion of the resource because they bear all the costs and benefits of their actions.
-
The owner can charge others for using the resource, which can lead to more efficient use. They can also invest in the resource's maintenance or improvement, knowing they will receive the benefits of these actions.
-
Therefore, private ownership can help align individual incentives with group interests, leading to more sustainable use of resources.
Similar Questions
One economically efficient way to eliminate the Tragedy of the Commons is to areduce the marginal social benefit of the resource. bestablish private ownership of the resource. ctax the owners of the resource. dprevent anyone from using the resource.
Tragedy of the commons arises because: Group of answer choicesExternal benefits are under-producedPublic goods are over-consumedCongestion reduces private benefitsThose consuming common resources don’t consider collective cost
Which of the following is not one of the points made in "Tragedy of the Commons"?Group of answer choicesIndividual property rights play a crucial role in resource preservation.Individual property rights tend to be tragically abused by the owners.Common property will tend to be overexploited.Common property makes its users try to use as much as possible and as soon as possible.
How does the government address the tragedy of the commons? A. By privatizing common resources B. By encouraging overuse of common resources C. By increasing taxes on common resources D. By providing subsidies for common resources
What is the tragedy of the commons? A. A situation where common resources are overused due to individual self-interest B. A situation where externalities are perfectly managed C. A state of maximum cooperation D. A situation where externalities do not exist
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.