The Tragedy of the Commons Is an Important Concept Related

question 12

Multiple Choice

The tragedy of the commons is an important concept related to environmental degradation and human behavior. Which of the following best describes this concept?

• A) When the self interest of individuals destroys natural resources being shared by society.
• B) When a common disease spreads through society due to poor sanitation.
• C) When over population creates living conditions that lower the quality of life.
• D) When humans act irrationally during a large-scale natural disaster.
• E) When humans overreact to an environmental threat and then limit economic growth.

---

Definitions:

Outstanding Common Stock

Shares of a company's common stock that have been issued and are in the hands of investors, including those held by the public and company insiders but excluding treasury shares.

Annual Amortization

The procedure of methodically deducting the starting cost of an intangible asset throughout its period of utility.

Retained Earnings

The portion of net profits not distributed to shareholders but reinvested in the business or kept as reserve.

Net Income

The profit a company retains after deducting every expense, tax, and cost from its total income.