The use of common property resources:
A) reduces positive externalities in many cases.
B) reduces negative externalities in many cases.
C) leads to positive externalities in many cases.
D) leads to negative externalities in many cases.

Question

Quizplus · Accepted Answer

Common property resources, also known as common-pool resources, are resources that are non-excludable and rivalrous in consumption. This means that anyone can use them and their use by one person decreases the availability for others. These characteristics often lead to overuse and depletion of the resource, which causes negative externalities such as environmental degradation and reduced productivity. Therefore, the use of common property resources often leads to negative externalities in many cases.

The Use of Common Property Resources