Which of the Following Applies to the Tragedy of the Commons

question 85

Multiple Choice

Which of the following applies to the tragedy of the commons?
I.In the absence of government action,there is an absence of incentives to prevent the overuse of the common resource.
II.When consumers take account of the marginal social benefit and marginal social cost,overuse of the resource occurs.
III.Even with government action,it is impossible for an efficient level of output to be achieved.

• A)I only
• B)I and II
• C)II and III
• D)I, II and III
• E)none of the above

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents the ownership interest of the shareholders.

Annual Reports

Comprehensive reports on a company's activities throughout the preceding year, intended to give shareholders and other interested parties information about the company's financial performance.

Footnotes

Additional information provided in financial statements to clarify figures or add context for readers.

Cost Method

A valuation approach in accounting that assigns the initial purchase price to inventories or investments.