The Tragedy of the Commons for Sheep Grazing on Common

question 418

Multiple Choice

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

• A)assigning land property rights.
• B)auctioning off sheep-grazing permits.
• C)taxing sheep flocks.
• D)subsidizing sheep flocks.

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Definitions:

Collateral Agreements

Legal contracts where a borrower pledges an asset as security for a loan, which the lender can claim if the loan is not repaid.