The Absence of Incentives to Prevent the Overuse of a Common

question 87

Multiple Choice

The absence of incentives to prevent the overuse of a common resource that arises when its users have no incentive to conserve it and use it sustainably is referred to as

• A)unsustainable production.
• B)sustainable production.
• C)the tragedy of the commons.
• D)rational ignorance.
• E)irrational production.

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Definitions:

Price Floors

Price controls that outlaw trade at prices below the floor.

Intended

Designed or planned to serve a particular purpose.

Technological Advancement

The process of innovation and improvement in technology, leading to the development of new products or the enhancement of existing ones.

Higher Value Use

The employment of resources or assets in a manner that maximizes their value or return, often resulting in the most efficient and profitable outcome.