Which of the following is an example of tragedy of commons ?
Correct answer: A. over fishing
- A. over fishing
- B. smoking in a public place
- C. excessive rain
- D. common use of public toilets
Explanation
Overfishing is the classic tragedy of the commons because individuals have an incentive to take fish from a shared resource, eventually depleting it for everyone. The problem arises when common access is combined with weak ownership or regulation.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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