"The problem with a common resource is that no one gets to use the resource." Comment on the preceding assertion
What will be an ideal response?
The assertion is totally false; the problem with a common resource is that too many people use the resource so that it is overused and depleted. A common resource is rival, so that one person's use of the resource decreases other people's use, but nonexcludable, so that no one can be prevented from using the common resource. As a result, everyone has the incentive to use the resource and no one has the incentive to conserve the resource.
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The division of the burden of a tax between buyers and sellers in a market is called tax incidence
Indicate whether the statement is true or false
Explain what the principal-agent problem is, and explain evidence of its existence in hospitals in the United States
What will be an ideal response?
To avoid double counting when GDP is estimated, economists: # randomize
[A]. Use GDP deflator [B]. Calculate value added at each stage of production [C]. Use retail prices [D]. Use price only intermediate goods
An example of business fixed investment spending is
A) a purchase of a home by a household. B) a purchase of a computer by an accounting firm. C) a purchase of a bond by General Electric Corporation. D) $200 million of unsold cars at a car dealership.