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:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all non-owner changes in equity such as unrealized gains and losses.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Trading Securities

Financial instruments that are bought and sold for the purpose of generating profits on short-term fluctuations in price.

Held-To-Maturity

Held-to-maturity describes investment assets that a firm plans and is capable of retaining until they reach their due date.