What is the common source of negative externalities and the tragedy of the commons?
A)A lack of clearly defined and enforced property rights
B)A lack of concern for human rights
C)A lack of competition
D)Self-interest motives of consumers and producers

Question

Quizplus · Accepted Answer

A lack of clearly defined and enforced property rights is the common source of negative externalities and the tragedy of the commons. In the tragedy of the commons, there is no individual ownership of a shared resource and everyone acts in their self-interest, leading to overuse and depletion. In the case of negative externalities, such as pollution, there is no clear ownership of the cost of pollution, which can lead to an overproduction of polluting goods. Clear and enforced property rights can create incentives to manage resources more efficiently and reduce negative externalities.

What Is the Common Source of Negative Externalities and the Tragedy