Negative externalities and the tragedy of the commons are problems that have a common source.What is this common source?

Question

Quizplus · Accepted Answer

Both negative externalities and the tragedy of the commons occur when there are no clearly defined property rights. In the case of negative externalities, individuals or firms do not bear the full cost of their actions that harm others, while in the tragedy of the commons, no one owns the shared resource, so everyone uses it to their own advantage without considering the long-term consequences. Clarifying and enforcing property rights can help internalize the costs and benefits of resource use and reduce these problems.

Negative Externalities and the Tragedy of the Commons Are Problems