The Tragedy of Commons Relates to the Idea That

question 16

Multiple Choice

The tragedy of commons relates to the idea that

• A) central planning sets all production targets.
• B) all wages, prices, and interest rates are controlled by government.
• C) collective ownership may not provide the proper private incentives for efficiency because individuals do not bear the full costs of their own decisions, but enjoy the full benefits.
• D) central planning sets all distribution targets.

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Definitions:

Birds-of-a-Feather Effect

The phenomenon that people tend to form relationships and bond with others who have similar characteristics, such as interests and values.

Foot-in-the-Door Effect

A psychological phenomenon where agreeing to a small request increases the likelihood of agreeing to a larger request later.

Proximity

In psychology, the closeness or physical distance between people that significantly affects attraction and relationship formation; in visual perception, a principle that elements close to one another are perceived as a coherent group.

Physical Attractiveness

The degree to which a person's physical features are considered aesthetically pleasing or beautiful by others.