Which of the following is an example of the tragedy of the commons?

• A. Overfishing in a public lake leading to depletion of fish stocks
• B. A person benefiting from national defense without paying taxes
• C. A consumer choosing not to buy a product due to its high price
• D. A company polluting its own private land

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of the tragedy of the commons. It occurs when individuals, acting independently according to their own self-interest, overuse and deplete a shared resource that is accessible to all, leading to long-term collective loss.
2. Step 2: Identify the key characteristics of the tragedy of the commons in each option: a shared resource, unrestricted access, and overuse or depletion caused by individual actions.
3. Step 3: Analyze the option 'Overfishing in a public lake leading to depletion of fish stocks.' Here, the lake is a common resource accessible to many fishermen, and overfishing by individuals reduces the overall fish population, harming everyone.
4. Step 4: Compare this with other options: 'A person benefiting from national defense without paying taxes' is a free-rider problem, not a resource depletion issue; 'A consumer choosing not to buy a product due to its high price' is a market choice, not related to common resource use; 'A company polluting its own private land' involves private property, not a common resource.
5. Step 5: Conclude that the example illustrating the tragedy of the commons is the overfishing scenario, as it clearly demonstrates the depletion of a shared resource due to individual self-interest.