When Individuals Are Tempted to Overuse a Shared Resource, They

question 37

Multiple Choice

When individuals are tempted to overuse a shared resource, they are in a ____________ dilemma.

• A)social
• B)commons
• C)A and B
• D)Neither A nor B

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Definitions:

Incentive Programs

Schemes designed to motivate and reward desired behaviors or performance from individuals or groups.

State of Nature

A term used in decision theory referring to the actual but possibly unknown status of the world, which affects the outcomes of decisions.

Opportunity Loss

The cost of the next best alternative foregone as a result of making a decision.

Actual Profit

The realised gain from business operations or investments, after all costs and expenses have been deducted.