What Causes the Tragedy of the Commons? (I) Social and Private

question 15

Multiple Choice

What causes the Tragedy of the Commons? (i) Social and private incentives differ.
(ii) Common resources are nonrival in consumption and nonexclusive.
(iii) Common resources are nonexclusive but rival in consumption.

• A)(i) only
• B)(ii) only
• C)(i) and (ii) only
• D)(i) and (iii) only

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Definitions:

Cash

Money in the form of currency, including coins and paper bills, used as a medium for financial transactions.

Future Income

Projected earnings or financial benefits expected to be received in the future.

Statement of Cash Flows

A financial report that provides aggregated data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.