Overuse of a Common Resource May Be Avoided by All

question 144

Multiple Choice

Overuse of a common resource may be avoided by all of the following methods except

• A) charging for the use of a common resource.
• B) issuing tradable permits for the use of a common resource.
• C) government taking over ownership of all private common resources.
• D) setting quotas or legal limits on the quantity consumed of the common resource.

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Definitions:

Base Year

A specific year against which economic or financial data is measured and compared to track growth, inflation, or other economic indicators.

Cyclical Unemployment

A type of unemployment that relates to the cyclic trends in the economy over time, often tied to changes in the business cycle.

Overall Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, reflecting the health of an economy.

Inflation

The upward movement in the overall price points of goods and services, cutting down on purchasing strength.