Small Tribes May Be Able to Solve the Tragedy of the Commons

question 81

Multiple Choice

Small tribes may be able to solve the tragedy of the commons by:

• A) subsidizing the activity that creates the tragedy.
• B) using social norms to punish and ostracize those that overuse a common resource.
• C) setting price controls below the equilibrium price to clear the market.
• D) All of the answers are correct.

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Definitions:

Cash Receipts Journal

An accounting ledger that tracks all cash inflows to a business, documenting sources of revenue or income.

Subsidiary Ledger Accounts

Detailed accounts contained within a subsidiary ledger, tracking individual transactions related to a specific customer, supplier, or type of item.

Accounts Receivable

Money owed by customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Accounts payable are liabilities representing the amount a business owes to its suppliers or creditors for goods and services received but not yet paid for.