The tragedy of the commons is the absence of incentives to
A) correctly measure the marginal social benefit from a common resource.
B) prevent under use of the common resource.
C) prevent overuse and depletion of a common resource.
D) discover the common resource.
C
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The size of the deadweight loss, or excess burden, of a tax depends on the
A) amount of producer surplus but not the amount of consumer surplus because it is the producers who send the tax revenues to the government. B) strength of demand. C) strength of supply. D) elasticities of demand and supply. E) number of demanders and the number of suppliers.
Which of the following is an example of the unfairness of rent control?
A) Voluntary exchange is encouraged by rent control. B) Racial discrimination in renting is discouraged by rent control. C) Newcomers have a more difficult time finding apartments. D) Rich people do not get apartments in these markets. E) Too many people rent apartments.