When one person uses a common resource and he diminishes other people's enjoyment of it,what is this an example of
A)a market force
B)an externality
C)the invisible hand
D)nonexcludability

Question

Quizplus · Accepted Answer

This is an example of a negative externality, where one person's use of the common resource has a negative impact on others who are trying to use it. The person using the resource may not consider the impact on others when making their decisions, leading to an inefficient outcome.

When One Person Uses a Common Resource and He Diminishes