The Phenomenon Known as the Tragedy of the Commons Occurs

question 9

Multiple Choice

The phenomenon known as the tragedy of the commons occurs
Whenever:

• A)the private sector owns resources and manages them tragically.
• B)the government owns resources and manages them tragically.
• C)there is no ownership of resources, so they become depleted due to lack of management.
• D)two countries own the same resource and cannot agree on its management.

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Definitions:

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Disposal Value

The estimated monetary value of an asset at the end of its useful life.

Annual Cash Revenues

The total money received from sales activities, without accounting for any deductions or costs, over the course of a year.

Hurdle Rate

The minimum rate of return on an investment that is required by a manager or investor to proceed with the investment.