Figure 18.5.1
-Common property rights:
A) increase efficiency over individual property rights.
B) enable the Coase theorem to work.
C) are responsible for the increasing success of preservation of African elephants.
D) are responsible for the increasing success of preservation of worldwide fishing resources.
E) result in faster depletion of resources than do individual property rights.

Question

Figure 18.5.1
-Common property rights:
A) increase efficiency over individual property rights. 
B) enable the Coase theorem to work. 
C) are responsible for the increasing success of preservation of African elephants. 
D) are responsible for the increasing success of preservation of worldwide fishing resources. 
E) result in faster depletion of resources than do individual property rights.

Quizplus · Accepted Answer

Common property rights often lead to a scenario known as the "tragedy of the commons," where individuals, acting independently and rationally according to each one's self-interest, behave contrary to the whole group's long-term best interests by depleting a common resource. This typically results in faster depletion of resources than if those resources were governed by individual property rights, where owners have an incentive to sustain the resource for long-term benefits.

Figure 18.5.1 -Common Property Rights