Multiple Choice
Which of the following explains why free-riding can result in a market failure?
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8. The Types of Goods
The Free Rider Problem and the Tragedy of the Commons
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Which 'commons' were first discussed as being overused over a hundred years ago in Great Britain?
A
Urban marketplaces
B
Public libraries
C
River fishing rights
D
Village grazing lands
Verified step by step guidance1
Understand the concept of 'the commons' in economics: these are resources shared by a community where individual users have access rights, but overuse can lead to depletion or degradation.
Recall historical examples of commons that were subject to overuse and depletion, particularly in Great Britain over a hundred years ago.
Identify that the classic example discussed by economists and historians is the 'village grazing lands,' which were common pastures used by villagers for their livestock.
Recognize that the problem of overuse of these grazing lands was famously analyzed in the context of the 'Tragedy of the Commons,' illustrating how individual incentives can lead to collective resource depletion.
Conclude that among the options given, 'village grazing lands' were the commons first discussed as being overused in Great Britain over a century ago.
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