Question

 5. Common resources versus private goods

 Spring is here, and Rina and her uncle would like to go fishing for the weekend in Florida. Rina could either go to the river in town where anyone can fish without a permit, or she could drive up to a stream located on her family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy).

 The fish in the river are considered _______  and _______  whereas the fish in the private stream are _______  and _______  In other words, the fish in the river are an example of _______  and the fish in the private stream are an example of _______ .

 Fishing in the river will likely lead to _______  because of which of the following reasons?

•  Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river.

•  Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.

•  All fishermen will choose to fish in the river because of the limited access to the stream.

•  All fishermen will choose to fish in the stream believing that there ere more fish there

Answer 1