The Tragedy of the Commons Is the

question 81

Multiple Choice

The tragedy of the commons is the

• A) overuse of a common resource.
• B) absence of incentives for people to pay for what they consume.
• C) underuse of a common resource.
• D) fact that common resources are nonrival.

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Definitions:

Conditional Order

Refers to an order in a legal or financial context that will only be executed if certain conditions are met.

Negotiable Instrument

A financial document, such as a check or promissory note, that contains a promise to pay a specific amount of money to the bearer or assignee, which can be transferred by endorsement or delivery.

Promissory Note

A financial instrument containing a written promise by one party to pay a certain sum of money to another party under specified conditions.

Revolving Line of Credit

A flexible loan arrangement which allows a borrower to use, repay, and re-borrow funds up to a certain credit limit.