What Causes the Tragedy of the Commons? (I)

question 92

Multiple Choice

What causes the Tragedy of the Commons? (i)
Social and private incentives differ.
(ii)
Common resources are not rival in consumption and are not excludable.(iii)
Common resources are not excludable but are rival in consumption.

• A)(i) only
• B)(ii) only
• C)(i) and (ii) only
• D)(i) and (iii) only

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Definitions:

Minority Passive Investments

Investments in which the investor holds a non-controlling stake and does not actively participate in management.

Trading Securities

Securities that are purchased by a company not for long-term investment but rather with the intent to trade for short-term gains.

Available-For-Sale Securities

Financial assets that are intended to be sold before their maturity but are not classified as trading securities.

Investment Account

A financial account held at a financial institution or brokerage that is used to hold securities, stocks, bonds, mutual funds, and other investments.