Question

14. An example of a common resource is:

a. coffee sold in coffee shops.

b. fishing in the ocean.

c. any type of public good.

d. any private good that is monopolized.

15. The Tragedy of the Commons:

a. refers to the fact that common resources tend to get overused and depleted.

b. implies that society will tend to voluntary preserve a common resource.

c. refers to the fact that common resources are typically of low quality.

d. is a slang indicating that communist economic systems tend to fail.

Answer 1

14. Common resources are the ones that do not have a well defined right of property and usage so that anybody can use it. This leads to their exploitation and overuse. Oceans are the resources where there are no defined property rights and therefore fishing in oceans is often exploitative. The correct choice is B

15. Option A is correct. The tragedy of the commons highlights the problem of exploitation of natural resources or resources that have no established property rights. It arises when it becomes complex, difficult as well as expensive to exclude potential users from common property resources.