One Economically Efficient Way to Eliminate the Tragedy of the Commons

question 14

Multiple Choice

One economically efficient way to eliminate the Tragedy of the Commons is to

• A)tax the owners of the resource.
• B)prevent anyone from using the resource.
• C)reduce the marginal social benefit of the resource.
• D)establish private ownership of the resource.

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Definitions:

Nonprofit Organizations

Entities primarily aimed at serving the public interest or social causes rather than generating profit for owners or shareholders.

Marketing Practices

The actions and strategies employed by companies to promote, sell, and distribute their products or services.

501(c)(3)

A section of the U.S. Internal Revenue Code that provides a tax-exempt status to nonprofit organizations dedicated to religious, charitable, scientific, or educational purposes.

IRS

The Internal Revenue Service, the United States federal government agency responsible for tax collection and enforcement of tax laws.