Common Resources Flashcards
1
Q
Are common resources excludable
Are they rival
A
Non excludable
Are rival
2
Q
What is tragedy of the commons
A
When resources are shared, individual act in their own self-interest, which ultimately depleted or spoils the shared resource for everyone
3
Q
How can governments stop the tragedy of the commons
A
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
4
Q
Example of a modern tragedy of the commons
A
Environmental degradation
Congested roads
Overfishing
