When Too Much of a Common Resource Good Is Consumed

question 27

Multiple Choice

When too much of a common resource good is consumed, the marginal _____ of the good is less than the marginal:

• A) private cost; social cost.
• B) private benefit; private cost.
• C) social benefit; social cost.
• D) social cost; social benefit.

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Definitions:

Debits

Accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet.

Bank Balance

The amount of money held in a bank account at a given moment.

Cash Account

An account that records all transactions involving cash, including receipts and payments.