Which of the following applies to the tragedy of the commons?
I.In the absence of government action,there is an absence of incentives to prevent the overuse of the common resource.
II.When consumers take account of the marginal social benefit and marginal social cost,overuse of the resource occurs.
III.Even with government action,it is impossible for an efficient level of output to be achieved.
A)I only
B)I and II
C)II and III
D)I, II and III
E)none of the above

Question

Quizplus · Accepted Answer

The tragedy of the commons occurs when individuals, acting in their own self-interest, overuse a common resource, leading to its depletion. This happens because there is no incentive to conserve the resource without government intervention. Statement II is incorrect because considering marginal social benefit and cost would prevent overuse. Statement III is incorrect because government action can potentially achieve an efficient level of output.

Which of the Following Applies to the Tragedy of the Commons