Which of the following is an example of a collective action problem?
A) Trade wars between the states under the Articles of Confederation.
B) All the roommates in a house wait for someone else to take out the trash and it never gets taken out.
C) A situation in which behavior that is individually rational is collectively irrational.
D) All of the above are collective action problems.
Answer (1)
A collective action problem arises when individuals acting in their self-interest lead to collective negative outcomes. Examples include trade wars and uncooperative roommates. Therefore, the correct answer is d) all of the above are collective action problems. ;
