The common-pool problem arises _____
A)when goods are not rival in consumption.
B)in the presence of asymmetric information.
C)when property rights are well defined.
D)when exhaustible resources are overused.
E)when renewable resources are overused.

Question

Quizplus · Accepted Answer

The common-pool problem arises when renewable resources are overused, leading to depletion or degradation of the resource. This is because the resource is not owned by any one individual or group, and so there is no incentive for any one actor to conserve or manage it in a sustainable manner.

The Common-Pool Problem Arises _____