Question : 21) The “tragedy of the commons” refers to the phenomenon : 1387510

21) The “tragedy of the commons” refers to the phenomenon where

A) individuals are free riders.

B) people overuse a common resource.

C) people do not internalize an externality.

D) there is rivalry in consumption.

22) A tragedy of the commons occurs when a resource is

A) rival and excludable.

B) rival and nonexcludable.

C) nonrival and nonexcludable.

D) nonrival and excludable.

23) Which of the following is an example of a common resource?

A) catfish in a private pond in Mississippi

B) impounded dogs in a dog pound

C) public health care services in the United States

D) sea otters in the coastal waters of the Pacific Ocean

24) Which of the following exemplifies the tragedy of the commons?

A) Residents on the northern coast of California receive only one public broadcasting signal which may be eliminated altogether if government funding is cut.

B) The Pleasant Hill community is growing so fast that the city’s only post office is not able to keep pace with the population growth in the community.

C) Canadian citizens receive free universal health care administered by provincial governments.

D) The Malaysian tapir, distinguished for its unusual coloration, is a target for poachers who hunt it for its tough and leathery hide.

25) Consider the stock of ocean tuna which is massively overfished. It is rational for an individual to exploit the resource rather than to conserve the stock because

A) the private benefit of harvesting tuna is higher than the social benefit of harvesting it.

B) the private benefit of harvesting tuna is lower than the social benefit of harvesting it.

C) the social cost of harvesting the fish is lower than the private cost.

D) the private cost of harvesting the fish is lower than the social cost.

Figure 5-15

Figure 5-15 shows the market for Atlantic salmon, a common resource. The current market equilibrium output of Q1 is not the economically efficient output. The economically efficient output is Q2.

26) Refer to Figure 5-15.  The current market equilibrium output is partly the result of overfishing. In that case, what does S1 represent?

A) the private marginal benefit of harvesting salmon

B) the social marginal benefit of harvesting salmon

C) the private marginal cost of harvesting salmon

D) the social marginal cost of harvesting salmon

27) Refer to Figure 5-15.  The current market equilibrium output is partly the result of overfishing. In that case, what does S2 represent?

A) the private marginal benefit of harvesting salmon

B) the social marginal benefit of harvesting salmon

C) the private marginal cost of harvesting salmon

D) the social marginal cost of harvesting salmon

28) Refer to Figure 5-15.  Identify the area that shows the deadweight loss from overfishing.

A) egh

B) ekh

C) efh

D) eghk

29) Overuse of a common resource may be avoided by all of the following methods except

A) charging for the use of a common resource.

B) issuing tradable permits for the use of a common resource.

C) government taking over ownership of all private common resources.

D) setting quotas or legal limits on the quantity consumed of the common resource.

30) The tragedy of the commons was avoided in the Middle Ages by

A) selling common grounds to individuals.

B) the local police who monitored entry into the commons.

C) social pressure to uphold traditionally accepted limits on family use of the commons.

D) the government which imposed a tax for the use of the commons.