Scenario: Consider the Tragedy of the Commons Problem

question 53

Multiple Choice

Scenario: Consider the tragedy of the commons problem. Suppose two firms (Row Inc. and Colm Inc.) are involved in a production process that exploits a natural resource. Each firm has two options: 1 and 2. The matrix below shows the game matrix for these two firms. The first number listed in each cell is the payoff to Row Inc., and the second number listed is the payoff to Colm Inc.

-Refer to the scenario above.This game is ________.

• A) a zero-sum game for Row Inc. and for Colm Inc.
• B) not a zero-sum game for Row Inc. and Colm Inc.
• C) a zero-sum game for Row Inc. but not a zero-sum game for Colm Inc.
• D) not a zero-sum game for Row Inc. but is a zero-sum game for Colm Inc.

Recognize and differentiate between various social institutions and their roles in society.

Comprehend social exchange theory and its conceptualization of social interaction.

Distinguish between macro- and micro-analysis in sociology.

Understand the role of ethnomethodology in uncovering the implicit norms of social interactions.

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Definitions:

After Tax Yield

The income return on an investment after taxes have been deducted, revealing the net gain to the investor.

Corporate Bond

A debt security issued by a corporation and sold to investors, with the promise of interest payments and the return of principal at maturity.

Tax Bracket

Ranges of income taxed at particular rates, which typically progress from low to high depending on the taxable income level.

Taxable

Refers to income or transactions that are subject to tax by governmental authorities.