Business I / Social Change and Environment
Practice question · Select all that apply

Which situations are tragedies of the commons?

Hints
  1. The problem needs a shared resource with private gains.
  2. Bearing your own depletion is a different situation entirely.
Show the answer
  • A. Fishing fleets depleting an unowned fishery
  • C. Overgrazing on a shared village pasture
  • D. Factories venting CO2 into a free atmosphere
Why

The tragedy needs a shared resource with private gains and socialized costs. The private farmer bears his own depletion, foolish perhaps, but not a commons problem; that is why property rights, quotas, and carbon prices are the standard cures.

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