The so-called tragedy of commons relates to the idea that
A) no one has an incentive to maintain collectively owned property.
B) collectively owned resources tend to be underused.
C) collective ownership provides the proper private incentives for efficiency because individuals bear the full costs of their own decisions and enjoy the full benefits.
D) central planning sets all production and distribution targets.

Question

Quizplus · Accepted Answer

The tragedy of commons refers to the problem in which individuals, acting in their own self-interest, overuse or exploit a shared resource to the point where it becomes depleted or damaged. This occurs because no individual has a strong incentive to limit their own use of the resource, as they do not bear the full costs of their actions. As a result, collectively owned resources tend to be overused or undermaintained, leading to a tragedy for all individuals who rely on that resource.

The So-Called Tragedy of Commons Relates to the Idea That