The Tragedy of the Commons for Sheep Grazing on Common

question 418

Multiple Choice

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

• A)assigning land property rights.
• B)auctioning off sheep-grazing permits.
• C)taxing sheep flocks.
• D)subsidizing sheep flocks.

---

Definitions:

Trade Discount

A reduction in the listed price of goods or services offered by sellers to buyers in a commercial transaction.

Customer Discount

A reduction in the price of goods or services offered to customers, usually to encourage prompt payment or increase sales volume.

Trade Discounts

A reduction in the listed price of a product or service, offered by sellers to buyers in the commercial market.

Sales Tax

A government-imposed tax on the sale of goods and services, which is typically a percentage of the sales price paid by the consumer.