Economists Refer to the Problem That Exists When Public Property

question 33

Multiple Choice

Economists refer to the problem that exists when public property is treated poorly because it is in no one's private interest to protect it as the

• A)tragedy of capitalism.
• B)tragedy of the commons.
• C)Achilles' heel of socialism.
• D)mistake of zoning.

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Definitions:

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Liability

Legal obligations related to finances that a business incurs throughout its operational processes.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity.

Cash

Money in the form of currency that can include bills, coins, and balances in bank accounts that are readily available for use.