Asked by Anthony Vasquez on May 07, 2024
Verified
Pollution is a negative externality, but it is not appropriate to view the problem of pollution as a common-resource problem.
Negative Externality
An economic situation where a third party is negatively affected by the actions of others, typically not reflected in the cost of those actions, such as pollution.
Common-Resource Problem
A dilemma in the management of resources that are available to all but are susceptible to overuse and depletion because they are not excludable.
- Master the foundational ideas of public goods, private goods, common resources, and how they differ from one another.
- Investigate the success of a variety of strategies in the regulation of communal resources utilization and in safeguarding assets designated for the public welfare.
Verified Answer
JB
Joshua Bortey BortierMay 13, 2024
Final Answer :
False
Explanation :
Pollution is often viewed as a common-resource problem because it involves the overuse or degradation of a shared resource (the environment) to which access is not restricted, leading to negative externalities that affect many parties not directly involved in the polluting activity.
Learning Objectives
- Master the foundational ideas of public goods, private goods, common resources, and how they differ from one another.
- Investigate the success of a variety of strategies in the regulation of communal resources utilization and in safeguarding assets designated for the public welfare.
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