The Tragedy of the Commons Occurs When a Resource Held

question 44

True/False

The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.

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Definitions:

Private Sector

The part of an economy that is run by individuals and companies for profit, as opposed to being controlled by the government.

Market Oriented

An economic system or approach that prioritizes supply and demand as the primary forces in the market, promoting free competition among businesses.

Pure Capitalist Economy

An economic system characterized by private ownership of the means of production and the absence of government intervention in the market.

Price Mechanism

The process through which market prices adjust to balance supply and demand, allocating resources efficiently.