The Tragedy of the Commons occurs because
a. common resources are rival in consumption.
b. government does not efficiently allocate society's scarce resources.
c. people consider the value of resources in the future more than in the present.
d. markets do not account for the presence of property rights.
a
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The "law of demand" states that, other thing remaining the same, the higher
A) the price of a good, the lower is the demand for this good. B) consumers' incomes, the greater is the demand. C) the price of a good, the higher is the quantity demanded. D) the price of a good, the smaller is the quantity demanded.
Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. If the government decided to impose a tax on soda, the government will cause
A) producers to internalize the externality. B) the external cost to drinking soda to become a private cost paid by the government. C) consumers to internalize the externality. D) the external cost to drinking soda to become a private cost paid by producers.
Explain how the short-run and long-run Phillips curves are related
What will be an ideal response?
Anyone can purchase sulfur dioxide emission allowances on the Chicago Mercantile Exchange. Several environmental groups have raised money to buy allowances (which they subsequently destroy)
As part of their fund-raising, these groups have urged contributors to buy the allowances as gifts. As one newspaper story put it, "For the environmentalist in your life, here's a gift that is sold by the ton, fits in an envelope and will last forever." Source for quote: Randall Edwards, "Dear Santa: Please Bring Me Sulfur Dioxide for Christmas," Columbus Dispatch, December 19, 1999. What would be the impact on the price of the emission allowances in the market if more people buy sulfur emission allowances and destroy them? A) The price falls to zero. B) The price rises. C) The price falls but not to zero. D) The price remains unchanged because the allowances purchased by the environmental groups are destroyed.