The common pool problem
A)occurs whenever goods are not rivals in consumption
B)is an example of adverse selection
C)arises whenever property rights are well defined
D)is usually caused by government intervention into private markets
E)is one in which resources to which access is unrestricted will tend to be overused

Question

Quizplus · Accepted Answer

The common pool problem occurs when resources to which access is unrestricted will tend to be overused. This is because individuals and groups will tend to seek their own self-interest by taking more than their fair share of the resource, leading to depletion and ultimately a tragedy of the commons. This problem can arise in situations where property rights are not well defined or enforced, and is not necessarily caused by government intervention.

The Common Pool Problem