When Susie uses a common resource and diminishes other people's enjoyment of it,she creates
A) a free rider problem.
B) an externality.
C) a nonrenewable resource.
D) general knowledge.

Question

Quizplus · Accepted Answer

When Susie uses a common resource and causes a negative impact on other people's enjoyment of it, she creates an externality. This is because her use of the resource affects others who did not have a say in her use of it and did not receive compensation for the negative impact.

When Susie Uses a Common Resource and Diminishes Other People's