Four roommates share an off-campus house and equally share the cost of rent. Everyone says that she values a clean house, yet the house is usually dirty. To an economist, a clean house in this case represents
A)a common resource problem.
B)a public good.
C)a club good.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A clean house in this scenario represents a common resource problem because all four roommates share the responsibility of keeping the house clean but there are no clear rules or incentives in place to ensure that everyone contributes equally. This can lead to a situation where everyone expects someone else to clean and the house remains dirty. A public good would be something that benefits everyone equally regardless of whether they contribute to it or not, such as a public park. A club good is exclusive to members who pay a fee or meet certain criteria, such as a private gym.

Four Roommates Share an Off-Campus House and Equally Share the Cost