The concept of 'Tragedy of the Commons' illustrates:
A. The efficient use of private goods
B. The overuse of a common-pool resource when property rights are not well defined
C. The benefits of free access to all resources
D. The under-provision of public goods only
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.
Explanation:
The interaction between the multiplier and accelerator is used in theories of business cycles (e.g., by Samuelson and Hicks) to explain fluctuations in economic activity.
Explanation:
Default effects show that the pre-set option exerts a strong influence on behaviour; many people stick with the default even when opting out is easy, making defaults a powerful policy tool.
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