The Tragedy of the Commons Refers to The

question 7

Multiple Choice

The tragedy of the commons refers to the:

• A)overuse of resources that have no price.
• B)overuse of resources that have no cost.
• C)under production of goods that have external benefits.
• D)failure of the Coase theorem when negotiation is costly.

---

Definitions:

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Covariance

A measure of how two random variables move in relation to each other, indicating the direction of their linear relationship.

Covariance

A measure indicating the extent to which two variables change in tandem, helping to assess the degree to which they move in relation to each other.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a numerical scale from -1 to 1.