The Tragedy of the Commons Is The

question 31

Multiple Choice

The tragedy of the commons is the:

• A) undersupply of a public good due to people not wanting to pay for a publicly common good.
• B) disappearance of certain markets due to the lack of willingness to pay by individuals, leading to collective misfortune.
• C) depletion of a common resource due to individually rational but collectively inefficient overconsumption.
• D) notion that common resources are generally under consumed and therefore not produced by suppliers due to artificially low demand.

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Definitions:

Incentive Schemes

Programs designed to motivate and compensate employees, often tied to performance criteria to enhance productivity and achieve corporate goals.

Ethical Behaviour

Conduct that is in accordance with accepted principles of right or wrong governing the conduct of a profession or individual.

Whistle Blowers

Individuals who expose information or activity within a private, public, or government organization that is deemed illegal, unethical, or not correct.

Limited Liability

Limited Liability refers to the legal structure of a corporation where shareholders' financial responsibility is limited to the amount they invested in the company, protecting personal assets from company debts and liabilities.