The Tragedy of the Commons Occurs When a Good Is

question 40

Multiple Choice

The tragedy of the commons occurs when a good is:

• A)rival in consumption and excludable.
• B)rival in consumption and not excludable.(True Answer )Correct
• C)not rival in consumption and excludable.
• D)neither rival in consumption nor excludable.

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Definitions:

Company Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.

WACC

Weighted Average Cost of Capital; a calculation that reflects the cost of a company's financing including both debt and equity.

Return on Investment

A financial ratio used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Investment Centres

Business segments or units within an organization that are responsible for their own revenues, expenses, and asset investments.