The tragedy of the commons is the:
A. depletion of a common resource due to individually rational but collectively inefficient overconsumption.
B. notion that common resources are generally underconsumed and therefore not produced by suppliers due to artificially low demand.
C. disappearance of certain markets due to the lack of willingness to pay by individuals, leading to collective misfortune.
D. undersupply of a public good due to people not wanting to pay for a publicly common good.
Answer: A
You might also like to view...
If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any individual tire producer buys,
a. tire producers should integrate backward into rubber production b. there will be a monopoly in rubber production c. tire producers should not integrate backward into rubber production d. tire producers will be charged prices above what the cost of producing rubber themselves would be e. tire companies will switch to fiberglass
Your purchase of a Gucci purse made in Italy would be classified as:
a. both c and d b. an investment good. c. a durable good. d. an import. e. an export.
One of the most serious weaknesses in traditional Medicare is that:
a. patients must pay a deductible every time they enter the hospital. b. the definition of an episode of illness is too restrictive. c. Part B is voluntary. d. patients are not able to choose their own physicians. e. it provides poor insurance coverage for unusually long hospital stays.
Refer to the information. If both government spending and taxes are zero, the equilibrium level of GDP is:
The following information is for a closed economy:
A. $200.
B. $300.
C. $400.
D. $500.