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