Question 1

Which of the following represents the most efficient solution to the Tragedy of the Commons?

Accepted Answer

Privatizing public lands allows individuals to take ownership and responsibility for the use and conservation of the resource. When individuals have a personal stake in the resource, they are more likely to use it sustainably and prevent overuse or degradation. This has been shown to be an effective solution in cases such as fisheries and forest management. Quotas, taxes, and environmental regulation rely on government intervention and enforcement, which can be difficult to implement and enforce effectively.

Question 2

If the use of a common resource is not regulated,

Accepted Answer

When a common resource is not regulated, individuals have no incentive to conserve the resource, and there is a risk that it will be overused or depleted. The tragedy of the commons is a phenomenon where individuals acting in their self-interest can ultimately harm the common good by depleting a shared resource. Therefore, the best choice is D.

Question 3

The overuse of a common resource relative to its economically efficient use is called

Accepted Answer

The term "Tragedy of the Commons" refers to the situation where a common resource is overused by individuals or groups, leading to depletion of the resource and negative consequences for all users. This concept was first introduced by economist William Forster Lloyd in 1833 and later popularized by Garrett Hardin in a 1968 essay.

Question 4

San Francisco is considering a plan used in London to reduce congestion on busy streets called

Accepted Answer

Congestion charging zones are areas in which drivers must pay a fee to enter during peak hours. This has been successfully implemented in London to reduce traffic and improve air quality.

Question 5

Each of the following would be considered a common resource except

Accepted Answer

National defense is typically provided by the government as a public good, not as a common resource. Common resources are rival and non-excludable, meaning that use by one person decreases availability for others, but it is difficult to prevent others from using the resource. Clean air, congested nontoll roads, and open grazing land are all examples of common resources.

Question 6

The Tragedy of the Commons describes

Accepted Answer

The Tragedy of the Commons is a situation where individuals or groups overuse a common resource, such as a fishery or grazing land, beyond its economically efficient use. This occurs because each individual or group acts in their own self-interest without considering the negative effects on others or the long-term sustainability of the resource. This can lead to depletion or degradation of the resource, which harms everyone who relies on it.

Question 7

Which of the following statements is not correct?

Accepted Answer

The Tragedy of the Commons illustrates the overuse, rather than underuse, of a common resource. When a resource is available to everyone, individuals have an incentive to exploit it for their own benefit, leading to the depletion of the resource.

Question 8

A toll on a congested road is in essence

Accepted Answer

A toll on a congested road is a form of corrective tax, as it aims to reduce the negative externality of traffic congestion by increasing the cost of using the road during peak hours. This encourages drivers to seek alternative routes or modes of transportation, ultimately reducing congestion and its associated negative impacts. The other options, such as interstate highway tax, Department of Motor Vehicles tax, or gasoline tax, are not directly related to congestion and are typically used to fund highway maintenance or general transportation infrastructure.

Question 9

On holiday weekends thousands of people hike on national park hiking trails.Some trails become so overcrowded the benefit or value of hiking diminishes to zero.An overcrowded hiking trail is an example of

Accepted Answer

The overcrowding of the hiking trail is an example of the Tragedy of the Commons, where a shared resource is depleted or degraded due to individuals pursuing their own self-interests without regard for the overall impact on the resource. The common resource, in this case, is the hiking trail, which becomes overcrowded and therefore reduces the benefit or value for everyone using it. This illustrates the need for conservation and management of shared resources for the benefit of all users.

Question 10

A Maine legislator wanted to create a deposit on cigarettes butts.If implemented,people would have the incentive to (1)not toss cigarette butts onto public streets and sidewalks,and (2)pick butts up to redeem them for the cash.The degradation of the environment from littered cigarette butts is a

Accepted Answer

The environmental degradation caused by littered cigarette butts is a perfect example of the Tragedy of the Commons, where individuals act in their own self-interest and neglect the damage they are causing to the shared environment. The proposed deposit system would create an incentive for individuals to act in a more responsible manner and reduce the harm caused by cigarette butt litter.

Question 11

Four friends decide to meet at a Chinese restaurant for dinner.They decide that each person will order an item off the menu,and they will share all dishes.They will split the cost of the final bill evenly among each of the people at the table.A Tragedy of the Commons problem is likely for each of the following reasons except

Accepted Answer

If each dish is excludable (meaning only those who ordered it can consume it) and rival in consumption (meaning multiple people cannot consume the same unit of the dish), then individuals do not face a Tragedy of the Commons problem. Each person is only consuming what they ordered, so they bear the individual cost associated with their own consumption. The other options (A, B, and C) can all contribute to a Tragedy of the Commons problem in this scenario.

Question 12

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Accepted Answer

Toll charges on congested roads is an example of government intervention to solve a Tragedy of the Commons problem. The Tragedy of the Commons refers to the situation where individuals use a shared resource in their own self-interest, depleting or spoiling the resource over time. In the case of congested roads, drivers act in their own interest by using the road as much as possible, leading to congestion and delays for everyone. Toll charges can help correct this by charging drivers for their use of the road, which can lead to fewer drivers and less congestion. The revenue generated from tolls can also be used to fund the maintenance and improvement of the road.

Question 13

Four friends decide to meet at a Chinese restaurant for dinner.They decide that each person will order an item off the menu,and they will share all dishes.They will split the cost of the final bill evenly among each of the people at the table.When the food is delivered to the table,each person faces incentives similar to the

Accepted Answer

Each person's decision to consume a particular dish affects the availability and quantity of that dish for the other people at the table. This situation is similar to the consumption of a common resource, as the total amount of food is limited and each person's consumption affects the amount available for others.

Question 14

One economically efficient way to eliminate the Tragedy of the Commons is to

Accepted Answer

By establishing private ownership of the resource, individuals have an incentive to conserve and manage the resource for their own benefit. This reduces the likelihood of overuse or depletion of the resource, leading to economic efficiency.

Question 15

What causes the Tragedy of the Commons? (i)	Social and private incentives differ.
(ii)	Common resources are nonrival in consumption and nonexclusive.
(iii)	Common resources are nonexclusive but rival in consumption.

Accepted Answer

The Tragedy of the Commons occurs because common resources are nonexclusive but rival in consumption, leading individuals to overuse them, as their private incentives do not align with the social good.

Question 16

Which of the following is an example of the Tragedy of the Commons?

Accepted Answer

The tragedy of the commons refers to a situation where a shared resource, such as the space around Earth for satellites, is exploited by individuals for their own benefit without regard for the long-term consequences. As the number of satellites increases, collisions become more likely, which would ultimately be detrimental to all parties involved.

Question 17

The Tragedy of the Commons

Accepted Answer

The answer of The Tragedy of the Commons
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Question 18

The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource.To correct for this problem,the town could

Accepted Answer

By auctioning off a limited number of sheep-grazing permits, the town can limit the number of sheep grazing on the commons to a sustainable level. This incentivizes shepherds to be more efficient in their use of the resource and avoid overgrazing. Allowing individual shepherds to choose their own flock sizes (option A) would likely lead to a tragedy of the commons scenario, as each shepherd would have an incentive to increase their own flock size, leading to the destruction of the common resource. Subsidizing the production of sheep's wool (option B) would not directly address the issue of overgrazing and could potentially even exacerbate the problem by encouraging more sheep production. Waiting until the market corrects the problem (option D) is not a viable solution as the destruction of the grazing resource could have irreversible environmental consequences.

Question 19

Each of the following is likely to be a successful way for the government to solve the problem of overuse of a common resource except

Accepted Answer

The answer of Each of the following is likely to...

Question 20

The Tragedy of the Commons can be corrected by

Accepted Answer

Assigning property rights to individuals ensures that they have ownership over the resource and are therefore more likely to take care of it and use it efficiently. This can help prevent overuse and depletion of the resource, which is the main problem with the Tragedy of the Commons. A cost-benefit analysis may not necessarily address the issue of overuse and depletion, government subsidies may not be sustainable or effective in the long run, and giving everyone access to the resource does not address the issue of overuse and depletion either.

Quiz 11: Public Goods and Common Resources