The Model Used to Explain Why Communities May Over-Exploit Shared

question 47

Multiple Choice

The model used to explain why communities may over-exploit shared environmental resources even when they know that it may be against their long-term interests is known as

• A) slash-and-burn agriculture.
• B) privatization.
• C) the "tragedy of the commons."
• D) "exploit and move on."

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Definitions:

Elasticity Coefficient

A numerical measure of the responsiveness of quantity demanded or supplied to one of its determinants, such as price or income.

Resource Demand

The requirement for resources or inputs necessary for production in response to market needs.

Infinitely Elastic

A situation in which the quantity demanded or supplied changes by an unlimited amount in response to any change in prices.