Certified Production & Operations Manager (POM) Practice Exam

Resources held by the public are commonly referred to as what?

1. Private assets

2. Common property

3. Public goods

4. Collective resources

The correct answer is: Common property

The term "common property" refers to resources that are held collectively by the public and are accessible to all members of a community or society. This means that these resources are not owned by any single individual or entity, but rather, they are managed and utilized collectively. Common property resources include natural elements that everyone has the right to access, such as air, water, and public lands. The concept emphasizes shared access and the need for communal management to avoid overuse and depletion. In contrast, private assets refer to resources owned by individuals or corporations, public goods are typically non-excludable and non-rivalrous items provided by the government (like national defense), and collective resources can imply shared resources but do not always carry the same legal and management implications as common property. Thus, "common property" is the most accurate choice for defining resources held by the public.