A Public Goods Dilemma Occurs When

question 111

Multiple Choice

A public goods dilemma occurs when:

• A) individual actions that may be rational by themselves lead to a collective disaster.
• B) individuals must give something to a collective resource without necessarily taking anything in return.
• C) an individual tries to cheat the system by getting more than her fair share of the commons.
• D) individuals encourage others to participate in a social movement.
• E) individuals do not contribute to a public good but benefit from the efforts of others who do.

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Definitions:

Goods

Tangible products or merchandise that are manufactured, bought, and sold in commerce.

Services

The action of helping or doing work for someone, often producing intangible benefits.

Unearned Revenue

Income received by an entity for services or products yet to be delivered or performed.

Liabilities

Liabilities or amounts due by a corporation to third parties or people outside the organization.