The Problem with Common Resources Is Similar to the Problem

question 182

Multiple Choice

The problem with common resources is similar to the problem with negative externalities because:

• A)both issues deal with natural resources.
• B)the marginal social benefit of producing another unit exceeds the individual's marginal benefit.
• C)the marginal social cost of producing another unit exceeds the individual's marginal cost.
• D)the individual's marginal cost of producing another unit exceeds the individual's marginal benefit.

---

Definitions:

Unauthorized Contract

A contract made by a person who lacks the authority to do so, potentially making it unenforceable against the presumed principal.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm to someone and constituting the basis for a claim by the injured party.

Misrepresent

To provide false or misleading representation of facts, often with the intention to deceive.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, offering services to the public.