An overcrowded beach is an example of
A)a positive externality.
B)a Tragedy of the Commons.
C)an environmentally inefficient allocation of resources.
D)an economically unfair allocation of resources.

Question

Quizplus · Accepted Answer

An overcrowded beach represents the tragedy of the commons, as it is a public good that is being overused due to the absence of property rights, leading to inefficient allocation of resources. It is not a positive externality as it doesn't provide any benefits to the surrounding areas or businesses. It is not necessarily economically unfair, as all individuals have equal access to the beach, but it is environmentally inefficient as the overcrowding can lead to environmental degradation.

An Overcrowded Beach Is an Example of