Which of the Following Statements Best Illustrates the "Tragedy of the Commons

question 72

Multiple Choice

Which of the following statements best illustrates the "tragedy of the commons?"

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

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Definitions:

Capital Goods

Long-term assets such as machinery, buildings, and equipment purchased by companies to produce goods and services.

Consumer Goods

Consumer goods are products bought by individuals or households for personal use, such as clothing, food, and household items.

International Specialization

The practice of countries focusing on the production of goods and services for which they have a comparative advantage, leading to trade.

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods and services that can be produced by an economy, given its available resources and technology.