Class discussion question. I need a reply 6+ sentence or 75 words. Defining a co
ID: 1137312 • Letter: C
Question
Class discussion question. I need a reply 6+ sentence or 75 words.
Defining a common resource would be goods that are rival in consumption but not excludable. An example of a common resource would be a fishing ground. When someone goes fishing somewhere, they are expecting to catch a fish. At this point, when they catch the fish/something, then that means there are less fish in the pond or wherever they are fishing. This is when the next person goes to fish, the same amount as the person before will no longer be there. Without government intervention, people will end up using the good too much because the people are not concerned with the actions they cause because other people want the same common resources.
Explanation / Answer
A common resource refers to a resource or a good which is wanted by one or more people who are willing and able to buy the product.
The economic problem deals with three main things-
1) unlimited wants
2) limited resources
3) having alternative uses
Common resource is a resource which is wanted by many people but these a limited in number so these goods should be used in such a manner that these goods can be equally distributed to the people by means of government intervention. Government will make sure that these resources are distributed amongst the people in a way that people are satisfied and should be used in the most efficient manner.
Government will intervene in a way that there is equal distribution and controlled consumption with minimal wastage and full efficiency.