What is the tragedy of the commons? Give two examples, including one from your state
What will be an ideal response?
The tragedy of the commons is the absence of incentives to prevent the overuse and depletion of a commonly owned resource. The private market place will not produce the efficient quantity of a common resource. Some examples include the congestion of traffic during rush hour, the congestion near a college football stadium whenever a major game is played, or the free Internet access computer at the local library.
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How does the expected inflation rate affect the short-run Phillips curve tradeoff between inflation and unemployment?
What will be an ideal response?
If farmers operating in the competitive wheat industry are incurring losses, and are not kept in business with government subsidies, which of the following will result?
A) Price and quantity produced will both increase in the long run. B) Resources will be reallocated out of the wheat industry into more productive uses. C) Farmers will run economic losses indefinitely, if they are rational. D) The supply of wheat will fall to near zero and the U.S. will become dependent on foreign suppliers of food.
(Consider This) According to the Consider This box "Superstars," the high pay of superstars reflects:
A. elastic product demand. B. high marginal revenue productivity. C. blocked occupational entry. D. warped societal values.
Relating to the Economics in Practice on page 338: A number of companies are using their own internal carbon taxes to reflect the social cost of carbon emissions on the environment. The price per ton of carbon emissions that they are using
A. has been set by the government. B. is not standardized. C. is the price established by the EPA. D. has been agreed to by the private sector.