Common Pool Resources

Resources where there is no stipulated ownership.

They are rivalry in nature and non-excludable in nature.

If one person uses the resource unethically, it affects others as well.

<p>An economic problem where an individual consumes a resource at the expense of society.</p> Signup and view all the answers

<p>Because they are open to everyone, and some individuals may overuse or misuse the resource, causing disruption to others.</p> Signup and view all the answers

<p>Through legislation and regulation, such as making laws, imposing fines and penalties, and issuing licenses.</p> Signup and view all the answers

<p>To prevent overutilization of common pool resources by fixing a quota and issuing licenses to authorized users.</p> Signup and view all the answers

<p>It may lead to unpopularity and protests from the people who are affected by the ban.</p> Signup and view all the answers

<p>It refers to a situation where either the buyer or the seller has more information than the other, leading to moral hazards and market failure.</p> Signup and view all the answers

<p>The used car market, where dealers may withhold information about the car's condition to get a higher price.</p> Signup and view all the answers

<p>Government actions, such as laws and regulations, can help to reduce asymmetric information and prevent moral hazards.</p> Signup and view all the answers

<p>To educate people to recognize what is right or wrong and to make informed decisions.</p> Signup and view all the answers

<p>A guarantee provides a replacement or refund if the product fails, while a warranty provides free servicing or repair under certain conditions.</p> Signup and view all the answers

<p>Information about the dangers of polystyrene (styrofoam) when reacted with hot substances and food.</p> Signup and view all the answers

<p>To make people accountable and responsible for the use and management of common pool resources.</p> Signup and view all the answers

<p>The cost of alternative uses of government budget, such as funding education or healthcare programs.</p> Signup and view all the answers