If It Is Possible to Place a Commonly Held Resource

question 117

Multiple Choice

If it is possible to place a commonly held resource under private ownership, then:

• A)the tragedy of the commons can be solved.
• B)the tragedy of the commons becomes even worse.
• C)the privately held resource will be overused relative to the social optimum.
• D)the privately held resource will be underused relative to the social optimum.

---

Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Limited Liability Corporation

A business structure where the owners have limited personal liability for the debts and actions of the corporation.

Corporation

A corporation is a legal entity that is separate from its owners, offering limited liability to its shareholders and having the ability to own property, sue, and be sued.

Professional Corporation

A business entity formed by lawyers, doctors, accountants, and other professionals, offering certain tax and legal advantages.