Which of the following applies to the tragedy of the commons? I.In the absence of government action,there is an absence of incentives to prevent the overuse of the common resource.
II.When consumers take account of the marginal social benefit and marginal social cost,overuse of the resource occurs.
III.Even with government action,it is impossible for an efficient level of output to be achieved.
A)I only
B)I and II
C)II and III
D)I,II,and III
E)None of the above

Question

Quizplus · Accepted Answer

The tragedy of the commons refers to 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. Statement I is correct because it highlights the lack of incentives to prevent overuse in the absence of government intervention. Statements II and III are incorrect because they misrepresent the dynamics of the tragedy of the commons and the potential for government action to mitigate these issues.

Which of the Following Applies to the Tragedy of the Commons