When a Production Quota Is Used to Remedy the Tragedy

question 31

Multiple Choice

When a production quota is used to remedy the tragedy of the commons,then

• A) the quota is set so that use of the resource is where marginal private benefit equals marginal private cost.
• B) the quota is set so that use of the resource is where marginal private benefit equals marginal social benefit.
• C) the market equilibrium, but not the efficient outcome, is achieved.
• D) users of the resource have an incentive to cheat on the quota.
• E) previous users of the resource are given the incentive to avoid use of the resource.

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Definitions:

Two-Point Discrimination

The ability to discern two separate points of contact on the skin, a measure of tactile sensory resolution.

Dermal Papillae

Small, nipple-like extensions of the dermis into the epidermis that increase surface area for oxygen and nutrient transfer between these layers.

Phasic Receptors

Sensory receptors that quickly respond to stimuli but then adapt and decrease their response over time.

Proprioceptors

Sensory receptors located in muscles, tendons, and joint capsules that provide information about body position and movement.