Consider the following problems: Overcrowded public highways,overfishing in the ocean,polluted air,and the near-extinction of the wild rhinoceros.What do these problems have in common?
A) Private markets could easily solve them if governments left the markets alone.
B) They would all go away if the government sponsored an intensive public-information campaign.
C) They are all the result of a failure to establish clear property rights over something of value.
D) They are all the result of a failure of corrective taxes.

Question

Quizplus · Accepted Answer

All of these problems involve a common pool resource: highways, ocean fish, air, and Rhinoceros. In the absence of clear property rights and a market for these resources, there is no incentive for individuals or companies to act in a sustainable manner. As a result, these resources are overused or depleted. The solution is to establish clear property rights so that the resources are managed sustainably.

Consider the Following Problems: Overcrowded Public Highways,overfishing in the Ocean,polluted