The Tragedy of the Commons Will Be Evident When a Growing

question 106

Multiple Choice

The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource. To correct for this problem, the town could

• A)allow individual shepherds to choose their own flock sizes.
• B)internalize the externality by subsidizing the production of sheep's wool.
• C)auction off a limited number of sheep-grazing permits.
• D)wait until the market corrects the problem.

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A state of having too much information to make a decision or remain informed about a subject.

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The influence exerted by society on individuals or organizations to conform to norms, behaviors, or values.

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