"Developing new antibiotics is expensive. It is also known that the more frequently bacteria are exposed to antibiotics, the more quickly the bacteria will develop resistance to the antibiotics. Yet, usually, each parent will press a doctor for an antibiotic if there is any chance it will heal a child quicker than that without drugs." The above statement can be best understood as a problem of
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Market failure, externalities and public goods has come up 114 times in 7 exams since 2006.
This question is on Common-pool resources and the tragedy of the commons, part of Market failure, externalities and public goods in Microeconomics.
Overuse of resources that anyone can access, and the policies that limit it.
TestStop has 12 past-paper questions on this subtopic.
Question from the DSE 2012 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.