Which of the Following Scenarios Best Describes a Tragedy of the Commons

question 39

Multiple Choice

Which of the following scenarios best describes a tragedy of the commons problem?

• A) Neighborhood residents discover strawberry plants in the flower beds at the city park.
• B) Illegal immigrants who do not pay taxes benefit from tax-funded police patrols.
• C) Pacifists become forced riders in tax hikes to fund national defense plans.
• D) There is overcrowding on otherwise nice public beaches.

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Definitions:

Raw Materials

Basic materials that are used in the production process to create goods and products.

Debt Securities

Financial instruments representing money borrowed that must be repaid, which include bonds, bills, and notes issued by governments or corporations.

Interest Revenue

The income earned from lending money or from investing in interest-bearing financial instruments.

Long-term Investments

Assets held for more than one year, including stocks, bonds, real estate, and other financial investments.