Small Tribes May Be Able to Solve the Tragedy of the Commons

question 81

Multiple Choice

Small tribes may be able to solve the tragedy of the commons by:

• A) subsidizing the activity that creates the tragedy.
• B) using social norms to punish and ostracize those that overuse a common resource.
• C) setting price controls below the equilibrium price to clear the market.
• D) All of the answers are correct.

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Definitions:

Compounded annually

Interest calculated once a year on the principal amount of an investment, including any interest from previous periods.

Foreclosure action

A legal process in which a lender seeks to recover the balance of a loan from a borrower who has stopped making payments, typically by selling the property used as collateral.

Purchase price

The price at which an item or property is bought.

Conditional sale contract

A sales agreement that transfers ownership of an item to the buyer only after specific conditions are met, usually full payment of the purchase price.