Tragedy of Commons Refers To

question 92

Multiple Choice

Tragedy of commons refers to:

• A)a problem that is created when everything is privately owned.
• B)a situation when the resources are owned by the government and the common people have limited access to them.
• C)a problem that arises when government takes incorrect measures which adversely affect common people.
• D)a problem that is created when everyone has an access to a particular resource.
• E)the adverse situation that arises when the government fails to take adequate measures to solve common problems.

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Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay if borrowing over a similar term, and with similar security, the funds necessary to lease or purchase an asset.

Lessor's Implicit Rate

The interest rate used in lease agreements, assumed by the lessor, that when applied to the lease payments, equals the fair value of the leased asset.

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time, such as monthly rent or annual scholarship allowances.

Present Value Factors

Multipliers used to calculate the present value of a sum to be received in the future by accounting for time value of money.