Which Event Would Be an Example of a Common Property

question 160

Multiple Choice

Which event would be an example of a common property resource market failure?

• A) use of portable buildings in elementary schools
• B) highway congestion
• C) increased instances of leukemia among neighbors of nuclear plants
• D) gasoline that costs $5 a gallon

---

Definitions:

Negative-Sum Game

In game theory, a game in which the gains (+) and losses (−) add up to some amount less than zero; one party’s losses exceed the other party’s gains. A strategic interaction (game) between two or more parties (players) in which the winners’ gains are less than the losers’ losses so that the gains and losses sum to a negative number.

Positive-Sum Game

A situation in game theory in which the sum of gains and losses is greater than zero, indicating that all participants can benefit from cooperation or competition.

Oligopoly

A market structure characterized by a few firms controlling a large portion of the market share, influencing prices and competition.

Competitive Ideal

An economic theory suggesting that markets perform optimally when there is a high level of competition among firms, leading to better products and services for consumers.