question archive 1)Which of the following is not a potential solution to the tragedy of the commons? a) Setting a production quota, b) Granting individual transferable quotas, c) Subsidizing use of the resource, d) Establishing property rights of the resource, e) None of the above
1)Which of the following is not a potential solution to the tragedy of the commons? a) Setting a production quota, b) Granting individual transferable quotas, c) Subsidizing use of the resource, d) Establishing property rights of the resource, e) None of the above
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1)Which of the following is not a potential solution to the tragedy of the commons?
a) Setting a production quota,
b) Granting individual transferable quotas,
c) Subsidizing use of the resource,
d) Establishing property rights of the resource,
e) None of the above.
2)A private good is _____ and _____.
a) rival; excludable,
b) rival; non-excludable,
c) non-rival; excludable,
d) non-rival; non-excludable,
e) scarce; expensive.
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1)The correct answer is c) Subsidizing use of the resource.
The reason for the tragedy of commons is that individuals abuse the use of a resource because they have the incentives to take out as much as possible right now, without worrying about its sustainability. Subsidizing the use of resource will in fact make the problem worse, because it does not solve the property issue which is at the heart of the tragedy.
2)The answer is a).
A good is rival if one's consumption of it reduces what is available to others. A good is excludable if one can be denied access to it. A private good is both rival and excludable.
