The Social Cost of Cutting Trees for Firewood in a Government

question 63

Multiple Choice

The social cost of cutting trees for firewood in a government forest is

• A)the increased likelihood of flooding as more trees are cut.
• B)the increased likelihood of flooding as more trees are cut plus the private cost of cutting the trees.
• C)opportunity cost to the individual of cutting the wood.
• D)the marginal costs of cutting the last tree.

---

Definitions:

Economic Growth

An increase in a country's production of goods and services over a period, often measured by the rise in its Gross Domestic Product (GDP).

Environment

Refers to the natural world, including the air, water, and land in which people, plants, and animals live.

Tragedy of the Commons

This concept describes a situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources through collective action.

Public Grazing Plots

Areas of land made available by governments or local authorities for the grazing of livestock by the public or specific community members.