Question

The government can intervene to achieve the socially optimal quantity of a common resource by:

Answer 1

The government can intervene to achieve the socially optimal quantity of a common resource in the following ways :

1. It can assign the property rights.

2. By imposing the tax on usage of that common resource.

3. By granting a limited number of the permits for trading of good to be used.

Common resources usage needs to be optimised because they are overused as the cost of their usage on others is ignored by the individuals.

Answer 2

The intervention of the government in achieving the optimal quantity for the common resource based on social terms are enlisted below as following,

• The right to property comes under the purview to entail the social common resources.

• Tax imposement is another measure for the usage of the resources which are common

• Limiting the acquisition of the socially optimal quantity.

• Safeguarding the non-destruction or exploitation on grounds of socially common resources as per them to be optimized in a way that they are efficient.