Asked by Adarsh Prasad on Jul 06, 2024
Verified
Under which of the following scenarios would a park be considered a common resource?
A) Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables.
B) Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use.
C) Visitors can enter the park free of charge and there are always plenty of empty picnic tables.
D) Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.
Common Resource
A type of good that is accessible to all members of society but has limited availability, leading to potential overuse or depletion.
Admittance Fee
A charge for entering a place or participating in an event, often used in contexts like museums, parks, or exhibitions.
- Outline and differentiate the characteristics among the four categories of goods: private goods, public goods, common resources, and club goods.
- Understand the implications of goods that are non-excludable and/or non-rival in terms of potential market failures.
Verified Answer
BC
Beatriz ChaconJul 10, 2024
Final Answer :
D
Explanation :
A common resource is characterized by being non-excludable and rivalrous. In option D, since the park is free to enter (non-excludable) and the picnic tables can become fully occupied, making it impossible for more visitors to use them at the same time (rivalrous), it fits the criteria of a common resource.
Learning Objectives
- Outline and differentiate the characteristics among the four categories of goods: private goods, public goods, common resources, and club goods.
- Understand the implications of goods that are non-excludable and/or non-rival in terms of potential market failures.
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