Privatizing a commons gives the person who owns it an incentive to
A) exploit the resource until it is depleted.
B) restrict it from being used at all.
C) manage it carefully.
D) make it available to everyone without restriction.
C
You might also like to view...
If you travel through the western United States in the summer, you are much more likely to encounter a shortage of camping spaces than a shortage of motel rooms because
A) camping sites are usually less expensive than motel rooms. B) motels are more often privately owned. C) the government has not provided as many camping spaces as the public wants. D) there are more motel rooms than camping spaces. E) vacationers in the summer display a greater demand for outdoor than for indoor sleeping sites.
If real GDP is less than potential GDP, the economy is
A) not in macroeconomic equilibrium. B) at full employment. C) in an above-full-employment equilibrium. D) in a below-full-employment equilibrium.
Why do negative supply shocks present such a difficulty for the Federal Reserve?
a. the Fed can choose to fight the rising price level, but this will result in lower unemployment. b. the Fed can choose to fight the rising unemployment, but this will result in an even lower price level. c. the Fed can choose to fight the falling unemployment, but this will result in an even higher price level. d. the Fed can choose to fight the rising unemployment, but this will result in an even higher price level. e. the Fed can choose to fight the rising unemployment, but this will result in higher taxes.
Suppose a tax of $10 per unit is imposed on this market. What will be the new equilibrium quantity in this market?
A. less than 70 units B. greater than 100 units C. 70 units D. between 70 units and 100 units