Elinor Ostrom is famous for asking which of the following questions?

• A. Is there a collective solution to solving issues related to the commons?
• B. Can markets allocate common resources efficiently?
• C. Do externalities always justify regulation?
• D. Is government ownership always optimal?

Answer: (A)

The main idea is that communities can govern shared resources through collective action. Ostrom showed, with many real-world cases, that local groups can design and enforce rules to manage the commons sustainably without relying solely on privatization or government control. Her work demonstrates that a collective solution to problems of the commons is not only possible but often effective when institutions are tailored to the local context and involve those who use the resource in decision-making. This stands in contrast to the view that markets will always allocate resources efficiently, that externalities always require regulation, or that government ownership is always the best path.