Question

Which of the following statements best describes a common resource?

Select one:

a. A resource that we cannot stop people from using, and when it is used, its benefit available to others is reduced.

b. A resource that is non-excludable but rival.

c. A resource that is typically characterised by overuse.

d. A resource that would not have occurred were the property rights well defined.

e. All of the above

Answer 1

Here, all options are correct.

Here, options a and b are correct because common resources are non-excludable but rival in nature. (whereas, public goods are both non-excludable and non-rival in nature)

Again, option c is correct because common resources are often overused.

Also, common resources must be called private goods if property rights were assigned to it. Thus, option d is correct.

Hence, option e is the correct answer.