Final answer:
The tragedy of the commons describes the overuse of a shared resource by individuals, leading to potential depletion, and is an example of market failure.
Step-by-step explanation:
The term that describes the individual use of products that can lead to externalities and results from the depletion of a resource available to all is called the tragedy of the commons. This concept highlights a scenario where individuals overly exploit a shared resource, like the environment or public spaces, leading to potential depletion or degradation for all users. It is a type of market failure because the market alone does not efficiently allocate resources and balance social costs and benefits. In contrast, the problems of free riders arise when individuals benefit from resources or services without contributing to their costs, often associated with public goods.