Multiple Choice
Which of the following scenarios best explains the concept of the tragedy of the commons?
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8. The Types of Goods
The Free Rider Problem and the Tragedy of the Commons
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Which of the following best describes the characteristics of a common property good, such as fish in the ocean?
A
Excludable and nonrival
B
Non-excludable and rival
C
Excludable and rival
D
Non-excludable and nonrival
Verified step by step guidance1
Step 1: Understand the definitions of the key terms: 'excludable' means that it is possible to prevent people who have not paid for a good from using it, while 'non-excludable' means it is difficult or impossible to exclude people from using the good.
Step 2: Understand 'rival' means that one person's consumption of the good reduces the amount available for others, whereas 'nonrival' means one person's use does not reduce availability for others.
Step 3: Analyze the example of fish in the ocean: it is difficult to exclude people from fishing (non-excludable), but when one person catches fish, there are fewer fish left for others (rival).
Step 4: Based on these characteristics, identify that a common property good is typically non-excludable and rival.
Step 5: Compare this to other types of goods (private goods, public goods, club goods) to reinforce why fish in the ocean fit the common property good category.
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