The concept of 'Tragedy of the Commons' illustrates: MCQ with Answer and Explanation

The concept of 'Tragedy of the Commons' illustrates:
A. The under-provision of public goods only
B. The overuse of a common-pool resource when property rights are not well defined
C. The efficient use of private goods
D. The benefits of free access to all resources
Answer: Option B
Solution (By JKSSB Mock Tests)
The tragedy of the commons describes the tendency for a shared, non-excludable but rivalrous resource to be over-exploited when individual users do not bear the full social cost of their actions.

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Practice More Economy Set 1 Questions

Question #1
The 'tax incidence' of a tax refers to:
A. the amount of tax collected
B. who legally pays the tax
C. the tax rate
D. who ultimately bears the economic burden of the tax

Correct Answer: Option D


Explanation:
Tax incidence is the distribution of the economic burden of a tax between buyers and sellers.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Reserve Bank of India' issues currency notes of denominations up to:
A. Rs 1,000
B. Rs 10,000
C. Rs 100
D. Rs 5,000

Correct Answer: Option A


Explanation:
RBI issues currency notes up to Rs 1,000 denomination, while one rupee notes are issued by Government of India.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a method of privatisation?
A. Nationalisation
B. Public-private partnership
C. Strategic sale
D. Disinvestment of shares

Correct Answer: Option A


Explanation:
Nationalisation is the opposite of privatisation; it involves taking private assets into public ownership. Privatisation methods include disinvestment, strategic sale and PPP.

This question belongs to: Economy GK Economy Set 1