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The economy of Japan is a highly developed free-market economy. The Japanese economy is forecast by the Quarterly Tankan survey of business sentiment conducted by the Bank of Japan. Japan is the world's third largest automobile manufacturing country ,  has the largest electronics goods industry , and is often ranked among the world's most innovative countries leading several measures of global patent filings. Facing increasing competition from China and South Korea,  manufacturing in Japan today now focuses primarily on high-tech and precision goods, such as optical instruments , hybrid vehicles , and robotics. Japan formerly had the second largest assets and wealth, behind only the United States in both categories, but was eclipsed by China in both assets and wealth in Thus, Japan is currently the world's third largest manufacturer behind China and the United States.
Basic Economic problem of Scarcity
The tragedy of the commons describes a situation in economic science when individual users, who have open access to a resource unhampered by shared social structures or formal rules that govern access and use, act independently according to their own self-interest and, contrary to the common good of all users, cause depletion of the resource through their uncoordinated action. The concept originated in an essay written in by the British economist William Forster Lloyd , who used a hypothetical example of the effects of unregulated grazing on common land also known as a "common" in Great Britain and Ireland. Although open-access resource systems may collapse due to overuse such as in over-fishing , many examples have existed and still do exist where members of a community with regulated access to a common resource co-operate to exploit those resources prudently without collapse,   or even creating "perfect order". In a modern economic context, " commons " is taken to mean any open-access and unregulated resource such as the atmosphere , oceans , rivers , ocean fish stocks , or even an office refrigerator. In a legal context, it is a type of property that is neither private nor public, but rather held jointly by the members of a community, who govern access and use through social structures, traditions, or formal rules.
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