When a good is not excludable and rival in consumption:
A)the free rider problem may arise.
B)the tragedy of the commons may arise.
C)the good is likely a private good.
D)the good is likely a common resource.

Question

Quizplus · Accepted Answer

When a good is not excludable and rival in consumption, it leads to the tragedy of the commons. This is because anyone can access and consume the good, leading to overuse and depletion of the resource. The tragedy of the commons occurs when individuals, acting in their self-interest, use up a shared resource, leading to its depletion or degradation. This is often seen in the context of natural resources like fisheries, grazing lands or forests.

When a Good Is Not Excludable and Rival in Consumption