[B, 30-31]
Economists refer to the problem that exists when public property is treated poorly
because it is in no one’s private interest to protect it as the
a) tragedy of capitalism
b) tragedy of the commons
c) Achilles heal of socialism
d) mistake of zoning
[C, 30-31]
Which of the following would economists label as an example of the “tragedy of the
commons”
a) the use of pesticides on private farm land
b) the use of growth hormone on cattle
c) the over fishing of the oceans
d) the neighbor who does not mow his yard
[B, 30-31]
Which of the following would economists label as an example of the “tragedy of the
commons”
a) the over grazing of private land by ranchers
b) the over grazing of public land by ranchers
c) the disregard for health warnings on home use pesticide sprays
d) the loss of value that a homeowner incurs when they fail to maintain their lawn
[B, 30-31]
A key element in an economist’s analysis of whether a company is making rational
decisions with regard to their exploitation of a natural resource is notion of
a) sentimental value
b) present value
c) ignored value
d) created value
[A, 30-31]
Using present value analysis, an economist will argue that we do not have to worry about
loggers harvesting young trees on private land
a) because it is more profitable for them to let the young trees grow
b) because it is not profitable for them to engage in any logging
c) because logging companies do not attempt to maximize profit
d) because young tree have no value
[A, 30-31]
If logging companies are allowed to harvest on public lands, economists use present
value analysis to suggest that logging companies will
a) harvest all they can
b) leave the young trees for later
c) harvest only the smaller trees
d) leave only the taller trees