📚 Learning Guide
Public Goods and Free Rider Problem
medium

Which of the following scenarios exemplifies both non-rivalry and a potential tragedy of the commons in the context of public goods?

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Learning Path

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Choose the Best Answer

A

A public park that is overused and suffers from neglect

B

A private swimming pool that only a few can access

C

A toll road that requires payment to use

D

A personal garden cultivated by an individual

Understanding the Answer

Let's break down why this is correct

Answer

A good example of a public good that shows both non-rivalry and potential tragedy of the commons is a clean beach. Non-rivalry means that one person enjoying the beach does not stop others from enjoying it too; everyone can use it at the same time without taking away from each other's experience. However, if too many people visit the beach and leave litter or damage the natural environment, it can lead to a tragedy of the commons, where the beach becomes less enjoyable for everyone. For instance, if everyone thinks, "I can leave my trash because others will clean it up," the beach can become polluted, making it less appealing for all visitors. This situation shows how public goods can be enjoyed by many, but if not cared for properly, they can be harmed by the very people using them.

Detailed Explanation

A public park can be used by many people at the same time, showing non-rivalry. Other options are incorrect because A private swimming pool is only for a few people, so it doesn't show non-rivalry; A toll road requires payment, which means it is not a public good.

Key Concepts

Non-rivalry
Tragedy of the commons
Topic

Public Goods and Free Rider Problem

Difficulty

medium level question

Cognitive Level

understand

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