Which Statement Best Illustrates the Tragedy of the Commons

question 40

Multiple Choice

Which statement best illustrates the tragedy of the commons? 

• A) Irrigated cropland can be ruined by salinization. 
• B) Some levels of pollution are life threatening. 
• C) Some activities harm the environment, but others do not. 
• D) A factory pollutes a river as much as the law allows.

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Definitions:

Cumulative Effect

The total impact of a change in accounting principle or correction of an error reported in a single period's financial statements.

Change In Accounting Principle

An adjustment made to the accounting methods used by a company, often requiring retrospective application to prior period financial statements.

Net Income

The remaining earnings of a firm once subtracting every expense and tax from its total income.

Extraordinary Item

Events or transactions that are distinct from the ordinary activities of a company, which are unusual in nature and infrequent in occurrence.