A neighborhood uses well water, and no individual family has to pay for the water they consume. Thus, each family waters their grass excessively and doesn't bother to conserve water. The well runs dry. This is an example of the economic model known as
A) the tragedy of the commons.
B) the Prisoner's Dilemma.
C) the chicken game.
D) the overabundance problem.

Question

A neighborhood uses well water, and no individual family has to pay for the water they consume.  Thus, each family waters their grass excessively and doesn't bother to conserve water.  The well runs dry.  This is an example of the economic model known as
A) the tragedy of the commons.
B) the Prisoner's Dilemma.
C) the chicken game.
D) the overabundance problem.

Quizplus · Accepted Answer

The tragedy of the commons is a situation where a commonly shared resource (in this case, the well water) is overused and depleted due to individuals' selfish behavior. Since there is no individual cost for water consumption, people do not have an incentive to conserve water, leading to the depletion of the resource.

A Neighborhood Uses Well Water, and No Individual Family Has