When Does the Tragedy of the Commons Result

question 23

Multiple Choice

When does the Tragedy of the Commons result

• A)when a good is rival in consumption and not excludable
• B)when a good is excludable and not rival in consumption
• C)when a good is both rival in consumption and excludable
• D)when a good is neither rival in consumption nor excludable

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Definitions:

Share Certificates

Physical documents issued by a company that certify the holder is the owner of a specified number of shares in that company.

Sole Proprietorship

A business structure in which a single individual owns the company and is responsible for its debts and liabilities.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income.

Legal Documents

Formal written instruments that are officially recognized and enforceable by law, such as contracts, deeds, wills, and policies.