The Tragedy of the Commons Will Be Evident When a Growing

question 253

Multiple Choice

The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource.To correct for this problem,the town could

• A) allow individual shepherds to chose their own flock sizes.
• B) internalize the externality by subsidizing the production of sheep's wool.
• C) auction off a limited number of sheep-grazing permits.
• D) wait until the market corrects the problem.

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Definitions:

Employee Surplus

A situation in which a company has more employees than needed, often leading to layoffs, reassignments, or other workforce adjustments.

Hiring Freeze

A temporary halt in the recruitment process, typically implemented to reduce costs or reassess staffing needs within an organization.

HRIS

Human Resource Information System, a software or online solution for managing an organization's human resources data and processes.

Managerial Decision Needs

The information and insights required by managers to make informed and effective decisions in organizational contexts.