If the Government Assigns Private Property Rights to a Common

question 139

Multiple Choice

If the government assigns private property rights to a common resource, then the

• A) resource is under-utilized.
• B) marginal private cost becomes equal to the marginal social cost.
• C) government needs to set a quota to achieve efficiency.
• D) None of the above answers is correct.

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Definitions:

Graph

A graph is a visual representation of data, showing relationships between variables typically through lines, bars, or points.

Relationship

How two or more thoughts, entities, or persons are associated, or the status of being associated.

Variable

An attribute or characteristic that can assume different values among subjects in a study or among objects of interest.

Increases

A term indicating a rise or growth in quantity, size, or intensity of a particular parameter or variable.