Which of the following best illustrates the 'Tragedy of the Commons' theory?

The concept of the "Tragedy of the Commons" refers to a situation in which individuals acting independently and rationally according to their self-interest ultimately deplete a shared limited resource, despite it being in everyone's long-term interest to conserve it. This idea highlights how individuals may prioritize immediate personal gains over the long-term sustainability of resources shared by a community.

The chosen answer illustrates this theory best because it emphasizes the outcome of excessive and unrestricted usage of a common resource, leading to its eventual depletion. For instance, overfishing in a common ocean or overgrazing on communal pastures embodies this phenomenon, as each individual's pursuit of maximizing their own resource extraction results in significant depletion for the entire group. Hence, while the immediate benefit may seem advantageous for a particular individual, the overall welfare of the community suffers as the resources become exhausted.

In contrast, the other choices reflect different approaches or outcomes that do not align with the central theme of the "Tragedy of the Commons." Government regulation and effective management showcase proactive strategies designed to prevent resource depletion and encourage sustainable practices, while shared benefits of public goods highlight cooperative interactions rather than individual exploitation of resources.