The tragedy of the commons is the:
A. undersupply of a public good due to people not wanting to pay for a publicly common good.
B. disappearance of certain markets due to the lack of willingness to pay by individuals, leading to collective misfortune.
C. depletion of a common resource due to individually rational but collectively inefficient overconsumption.
D. notion that common resources are generally under consumed and therefore not produced by suppliers due to artificially low demand.
C. depletion of a common resource due to individually rational but collectively inefficient overconsumption.
You might also like to view...
An individual investor can reduce the risk of investing by selecting a bundle of different types of financial assets.
Answer the following statement true (T) or false (F)
Collusion:
A. occurs only when no dominant strategy is present. B. is a cooperative outcome between competitors. C. is observed, but economists cannot theoretically model it. D. is a theoretical concept that is rarely observed.
How do economists view profits?
A. Profits are an asset the business holds. B. Profits are one of the costs paid to a factor of production. C. The firm's profit equals the sum of all payments to the 5 factors of production. D. Profits are guaranteed as long as a firm operates ethically.
Exchange rates that are determined by the unregulated forces of supply and demand are
A. fixed exchange rates. B. managed exchange rates. C. pegged exchange rates. D. floating exchange rates.