U.S. issues Arctic drilling permit to Royal Dutch Shell The U.S. government has given Royal Dutch Shell permission to drill for oil and natural gas in the Arctic Ocean. Environmentalists say it is the wrong decision. ​Source: The Wall Street Journal​, August​ 17, 2015 Are the oil and gas reserves public​ goods, private​ goods, or common​ resources? When an oil company receives a permit to develop a particular oil​ reserve, is that oil reserve a public good or a private​ good? Will the oil company produce an inefficient quantity or an efficient​ quantity? Explain. Oil and gas reserves are​ _______. A. a private good B. a common resource C. a public good

Respuesta :

Answer:

C. a public good

Explanation:

Oil and gas reserves are the public good

Since , Oil and Gas reserves belongs to the property of the nation and the license to drill them are controlled only by the government .

The oil and gas reserves are both non-excludable and are non- rival.

Excludability means the nature of the use of a goods or services .