Which of the following represents a tragedy of the commons?

• A. A consumer refusing to pay for a public good but still benefiting from it
• B. A government providing subsidies for renewable energy
• C. Overfishing in a public lake leading to depletion of fish stocks
• D. A company polluting its own private land

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of 'Tragedy of the Commons'. It occurs when individuals, acting independently according to their own self-interest, overuse and deplete a shared resource, leading to long-term collective loss.
2. Step 2: Analyze each option to see if it involves a shared resource being overused or depleted due to individual self-interest without adequate regulation or ownership.
3. Step 3: The first option describes a consumer benefiting from a public good without paying, which is an example of a 'free rider' problem, not necessarily a tragedy of the commons.
4. Step 4: The second option involves government subsidies for renewable energy, which is a policy action and does not describe overuse or depletion of a common resource.
5. Step 5: The third option, overfishing in a public lake, fits the tragedy of the commons because the fish stock is a shared resource that can be depleted by individual fishermen acting in their own interest, leading to long-term harm for all.