The "tragedy of the commons":
A) May arise when private property rights are not well defined.
B) Arises from a conflict between individual self interests and the social welfare.
C) Is an example of market failure arising from public goods.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

The "tragedy of the commons" describes a situation where individual users, acting independently according to their own self-interest, behave contrary to the common good of all users by depleting or spoiling that resource through their collective action. It often arises when private property rights are not well defined, leading to overuse or misuse of resources. This scenario is indeed a conflict between individual self-interests and social welfare, and it is considered a type of market failure, particularly related to the management and consumption of common resources or public goods.

The "Tragedy of the Commons