Define the tragedy of the commons. Give three examples of common pool resources. Briefly explain why common pool resources are subject to overuse
What will be an ideal response?
The tragedy of the commons refers to situations where common pool resources are subject to overuse and depletion. Examples include forest land, pasture land, fish in the ocean, rhinos in the wild, and space on a public beach. Common pool resources are subject to overuse because each individual fully captures the private benefit of using the resource but only bears part of the cost of using the resource. As a result, each individual has no incentive to maintain the quality or purity of the resource.
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What are the components of M2?
What will be an ideal response?
Goods that are actually produced by firms are not really limited in supply, because the firms can always produce more of them
a. True b. False Indicate whether the statement is true or false
In order to maintain a fixed exchange rate when demand for a domestic currency falls, the government must:
a) use its foreign currency reserves to buy domestic currency. b) use domestic currency to buy more foreign currency. c) print more money to boost the money supply. d) reduce interest rates to attract more demand for domestic currency.
Adriana is maximizing her utility. Her MUx/Px = 10 and MUy = 60. Then the price of Y must be
A. $1. B. $6. C. $10. D. $60.