Question:
The main characteristics of common resources are,
(1) rivalry in consumption and non-excludability.
(2) non-rivalry in consumption and excludability.
(3) non-rivalry in consumption and non-excludability.
(4) ability to regulate and excludability.
(5) rivalry in consumption and excludability.
Correct Answer:
(1)
Answer Explanation:
Common resources (like fish in the ocean or public pastures) are non-excludable (anyone can access them) but rivalrous in consumption (one person catching a fish leaves fewer fish for everyone else), leading to the “Tragedy of the Commons.”
Topic: Market Failure Year: 2021
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