One Way to Overcome the Tragedy of the Commons Is

question 114

Multiple Choice

One way to overcome the tragedy of the commons is to

• A) assign property rights so that someone owns the resource.
• B) take away property rights so that no one owns the resource.
• C) leave the market alone because the market will reach an equilibrium in which the efficient amount of the resource is used.
• D) educate people in order to overcome the problem of rational ignorance.
• E) None of the above answers is correct.

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Definitions:

Corporation Act

refers to legislation that governs the formation, operation, and dissolution of corporations.

Foreign Corporation

A company that is incorporated in one country but does business in another under the laws of the latter.

Incorporated

A legal process used to form a corporate entity or company. It is recognized by law as a separate legal entity from its owners.

Doing Business

The activities and actions involved in managing and operating a company or engaging in commerce.