Which of the following is most likely to lead to the underpricing and overuse of an economic resource?

Question

Quizplus · Accepted Answer

The absence of an enforceable property right often leads to the tragedy of the commons, where individuals overuse and deplete a shared resource because they do not bear the full cost of their actions. This often leads to underpricing and overuse of the resource. Human greed and selfishness (A) and capital markets (B) may also play a role in the overuse of resources, but the absence of enforceable property rights is a more direct cause. Lack of understanding of pollution and its effects (D) is not directly related to the underpricing and overuse of economic resources.

Which of the Following Is Most Likely to Lead to the Underpricing