The "Tragedy of the Commons" Refers to the Phenomenon Where

question 238

Multiple Choice

The "tragedy of the commons" refers to the phenomenon where

• A)individuals are free riders.
• B)people overuse a common resource.
• C)people do not internalize an externality.
• D)there is rivalry in consumption.

Understand the concept of limited liability in the corporate form.

Recognize the continuous and perpetual life of a corporation.

Distinguish between publicly held and privately held corporations.

Understand the process and legalities involved in forming a corporation.

---

Definitions:

Floating Exchange Rates

A currency system where the value of a currency is allowed to freely fluctuate according to the foreign exchange market without direct government control.

LIBOR

A benchmark rate that some of the world’s leading banks charge each other for short-term loans, serving as a global reference for financial products.

Foreign Currency

Currency of another country, used to conduct international transactions or investments.

Forward Market

A marketplace for the exchange of financial instruments or commodities for delivery in the future at prices agreed upon today.