The depletion of a common resource due to individually rational but collectively inefficient overconsumption is called:
A) the free rider problem.
B) the tragedy of the commons.
C) rival in consumption.
D) excludability.

Question

Quizplus · Accepted Answer

The tragedy of the commons refers to the depletion of a common resource due to individuals using it for their own benefit without considering the impact on others, resulting in an overall inefficient outcome for the group. The other options (A, C, D) refer to different concepts, but do not capture the specific scenario described in the question.

The Depletion of a Common Resource Due to Individually Rational