Question

The Tragedy of the Commons can be corrected by:________

a. making certain everyone in the economy has access to the resource.
b. providing government subsidies for the resource.
c. conducting a cost-benefit analysis.
d. assigning property rights to individuals.

Answer 1

D. Assigning property rights to individuals

Step-by-step explanation:

Tragedy of Commons refers to over exploitation of Common Pool resources : which are Non Excludable (can't be feasibly prevented to be consumed by non paying consumers) , Rivalrous (its consumption reduces its availability to be consumed by other consumers) . Eg : Grazing Land , Fishing Pond

It can be reduced by : Government Intervention or Private Property Rights . Government intervention (not Subsidy) can be rather about legislation & laws , regulatory mechanisms about monitoring the usage of such resources. Private ownership can solve this by adding the element of excludability element to such resources , channelising its utilisation only for efficient purposes , not for wastage .