Question

Because public goods are nonexclusive, it is possible for someone to:

decide not to pay for their own consumption of a public good.

decide not to consume a public good.

sell public goods at enormous profit.

prevent others from consuming a public good.

The Brazilian rainforest covers a large area with much human contact. Once it is cut down it cannot regenerate itself into rainforest - though it can serve as farmland for some years until the soil nutrients are depleted. This sounds like

A classic tragedy of the commons in the making

A classic club good problem in the making

A classic positive externality in the making

A classic case of natural monopoly

Answer 1

a) "A"

It creates a problem of free rider that means a person not paying for the use of public goods but using it.

b) "A"

A classic tragedy of common. A tragedy of common occurs when people believe that if they don't use the resources it will be used by others and they will be excluded from the benefit of such goods. So, they all rush to use that product to the point where it gets depleted. Here, that resource is the fertile land of Amazon and its green forest.