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What are the two problems associated with common pool nature

User Dykotomee
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Final answer:

The two main problems linked to the common pool nature are the 'tragedy of the commons,' leading to resource depletion, and 'free riding,' where individuals benefit from group activities without contributing.

Step-by-step explanation:

The two main problems associated with the common pool nature of resources are known as the tragedy of the commons and free riding. The tragedy of the commons occurs when individuals exploit a shared resource to the extent that it becomes depleted, harming the community as a whole. For instance, rapid industrialization can lead to significant air pollution, which is not contained by national borders and affects global air quality, demonstrating the cross-border implications of the tragedy of the commons. Alternatively, the issue of free riding arises when individuals benefit from a collective activity without contributing to it, thus posing challenges to achieving group goals and changing the status quo. These collective action problems are often addressed through political solutions, such as government regulation or privatization, though both approaches have their drawbacks, including potential short-term focus and misuse of resources.

User MuhammadBassio
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