As a Result of a Successful Attempt by Government to Cut

question 119

Multiple Choice

As a result of a successful attempt by government to cut the economic pie into more equal slices,

• A)the pie gets larger,and there will be more pie overall.
• B)the pie gets smaller,and there will be less pie overall.
• C)it increases the reward for working hard,resulting in people producing more goods and services.
• D)those who earn more income pay less in taxes.

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Definitions:

Tragedy of the Commons

The Tragedy of the Commons is a situation in a shared-resource system where individual users acting independently and rationally according to their own self-interest behave contrary to the common good of all users by depleting or spoiling the shared resource.

Economically Efficient

A situation where resources are allocated in a way that maximizes the net benefits to society or achieves the desired output with the least possible input.

Tragedy of the Commons

A scenario where individuals, guided solely by their personal gain, independently exploit or degrade communal assets, despite such actions being against the collective long-term benefits.

Grazing Land

Land used for the purpose of raising livestock, where animals feed on naturally grown grasses and other plants.