The Essential Cause of the Tragedy of the Commons Is

question 40

Multiple Choice

The essential cause of the tragedy of the commons is the fact that:

• A)it can be difficult to solve the free-rider problem.
• B)one person's use of a commonly held resource imposes an external cost on others.
• C)when a resource has no price, it leads to a positional externality.
• D)governments may not tax activities that generate negative externalities.