Explain the "tragedy of commons."
What will be an ideal response?
The tragedy of commons is the idea that collective ownership may not provide the proper private incentives for efficiency because individuals do not bear the full costs of their own decisions but do enjoy the full benefits.
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Minimum wages:
A) benefit all workers. B) are usually set below equilibrium wages. C) can reduce wage rigidity. D) can increase unemployment.
Rio Tinto's incentive to adopt new robotic technology was increased by the high wages it was having to pay to attract miners and truck drivers. In this instance, Rio Tinto began using new robotic technology to
A) substitute labor for capital in production. B) add labor as a complementary resource for its capital. C) add capital as a complementary resource for its labor. D) substitute capital for labor in production.