The Tragedy of the Commons Will Be Evident When a Growing

question 100

Multiple Choice

The Tragedy of the Commons will be evident when a growing number of crocodile hunters leads to the loss of crocodiles in many rivers: Possible solutions to this problem include:

• A) providing only a limited number of hunting permits to the hunters
• B) internalising the externality by using crocodile farms to turn the animals into a private good
• C) reduce the hunting season for crocodiles
• D) all of the above could be done

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Definitions:

Acronym

A word formed from the initial letters of a name or by combining initial letters or parts of a series of words.

FOB

Free On Board; a term in international commercial law specifying at what point the risk of loss shifts from the seller to the buyer.

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer gives a previously owned product as part of the payment for a new product.

Price Reduction

A decrease in the price of a product or service, often to attract more customers or respond to market conditions.