The degradation of the environment from litter is a A. a negative externality. B. free rider problem. C. Tragedy of the Commons. D. Both a and c are correct.

D. Both a and c are correct.

Explanation:

The tragedy of the commons is a situation in a shared-resource system where individual users, acting independently according to their own self-interest, behave contrary to the common good of all users by depleting or spoiling the shared resource through their collective action.

It damages our environment (plants, animals) and impacts local tourism. It is smelly and dirty, and carries germs, bacteria and viruses. Places with a high degree of littering see a decreases in property values, and are more likely to be the site of fires.

Pollution is a negative externality. Economists illustrate the social costs of production with a demand and supply diagram. The social costs include the private costs of production incurred by the company and the external costs of pollution that are passed on to society.

Blowing litter can cause automobile accidents as well as land and air pollutions