Question

Which economic theory predicts resource depletion by individual users, contrary to the common good of all users?

1) Tragedy of the Commons
2) Supply and Demand
3) Keynesian Economics
4) Monetarism

Answer 1

The Tragedy of the Commons economic theory predicts resource depletion by individual users, contrary to the common good of all users.

Step-by-step explanation:

The economic theory that predicts resource depletion by individual users, contrary to the common good of all users, is the Tragedy of the Commons. According to this principle, when a resource is held in common and is scarce, each individual has an incentive to take as much as they can for themselves, leading to the depletion of the resource. This theory highlights the conflict between individual self-interest and the collective well-being.