Objectives
Describe how government actions can lead to more efficient outcomes when negative externalities are present
Explain methods of managing possible solutions for the tragedy of the commons
Discuss the tragedy of the commons in a free-market economy.
Address the following in your response:
1. Explain the concept of the tragedy of the commons
2. Can it be avoided in a true free-market economy? Why or why not?
3. Identify three government actions that you believe can have a positive, efficient outcome in the midst of negative externalities.
4. Is government intervention necessary to prevent the depletion of shared resources? Why or why not? What other methods can be implemented to help manage the situation?
