The Tragedy of the Commons

question 156

Multiple Choice

The Tragedy of the Commons

• A)occurs most often with public goods.
• B)is only applicable to shared grazing rights among sheep herders.
• C)is eliminated when property rights are assigned to individuals.
• D)occurs when social incentives are in line with private incentives.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing an action.

Tuition

The fee for instruction at a school, university, or college.

Room And Board

The combined cost of housing (room) and food/meals (board) typically for students living on a college campus.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, a fundamental concept in economics.