When a Production Quota Is Used to Remedy the Tragedy

question 62

Multiple Choice

When a production quota is used to remedy the tragedy of the commons, then

• A) the market equilibrium, but not the efficient outcome, is achieved.
• B) users of the resource have an incentive to cheat on the quota.
• C) the quota is set so that use of the resource is where marginal private benefit equals marginal social benefit.
• D) the quota is set so that use of the resource is where marginal private benefit equals marginal private cost.
• E) previous users of the resource are given the incentive to avoid use of the resource.

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Definitions:

Self-Directed Teams

Groups of employees who are given autonomy to plan and manage their own work, often including the authority to make decisions about processes, tasks, and goals.

Employee Empowerment

A strategy where employees are given the authority and resources to make decisions and contribute to the company's success.

Work Environments

Work environments encompass the physical and psychological conditions under which employees work, including the workspace, culture, and occupational health and safety standards.

Job Expansion

A strategy employed by organizations to increase the number and variety of tasks that an employee performs.