Unit 4 - common goods (MC).docx

**1. In the context of the \"Tragedy of the Commons,\" which of the following best describes the dilemma faced by individual users of shared resources?** - A\) Individual users experience both the costs and benefits equally - B\) Individual users gain all the benefits while costs are distribut...

**1. In the context of the \"Tragedy of the Commons,\" which of the following best describes the dilemma faced by individual users of shared resources?** - A\) Individual users experience both the costs and benefits equally - B\) Individual users gain all the benefits while costs are distributed among all users - C\) Costs and benefits are equally shared among all users - D\) The tragedy only occurs when government regulations are in place\ **Answer**: B **2. Which of the following statements about mutual coercion is correct?** - A\) It eliminates the need for governmental intervention in managing common resources - B\) It relies on voluntary compliance to control the use of common goods - C\) It introduces penalties or regulations to internalize externalities, such as carbon taxes - D\) It promotes the privatization of common resources to solve overuse issues\ **Answer**: C **3. Why is privatization of common goods, such as land or fishing grounds, considered a potential solution to the tragedy of the commons?** - A\) It reduces overall resource consumption by limiting access - B\) It encourages individual users to maximize short-term benefits - C\) It ensures that the costs of resource depletion are shared equally among all - D\) It aligns individual incentives with the conservation of the resource since the individual bears the full cost and benefit\ **Answer**: D **4. Which of the following is a significant drawback of using privatization as a solution for managing common resources?** - A\) It ensures fair distribution of resources among all users - B\) It may lead to overexploitation due to lack of regulation - C\) It can lead to inequality in resource access, as only those who can afford ownership benefit - D\) It removes all individual incentives for profit-driven behavior\ **Answer**: C **5. Elinor Ostrom\'s community-based solution to managing the commons focuses on bottom-up governance. Which of the following best describes one challenge of this approach in a global context?** - A\) The rules developed by each community are easily transferable between regions - B\) Trust between community members is irrelevant to the success of this system - C\) Bottom-up governance is difficult to implement at a large scale because it relies heavily on local context - D\) Government intervention is always necessary for such a system to work effectively\ **Answer**: C **6. Which of the following is an example of how local rules in a community-managed commons could differ from region to region?** - A\) The number of users allowed in each community is fixed by national government - B\) Local conditions, such as geography and resource availability, influence the creation of specific rules tailored to a community's needs - C\) Global standards ensure uniformity in rule-making across all commons - D\) Each community uses identical regulations regardless of their environmental conditions\ **Answer**: B **7. The success of community-based resource management depends on several design principles. Which of the following principles is most critical for preventing misuse and ensuring compliance among users?** - A\) Participation in rule modification - B\) Absence of local rules and sanctions - C\) Graduate sanctions for rule violators - D\) Lack of monitoring and enforcement\ **Answer**: C **8. Which of the following best explains why carbon taxation is considered an effective method for managing carbon emissions?** - A\) It places a limit on how much carbon companies can emit - B\) It raises revenue that can be used to fund climate change solutions - C\) It forces companies to internalize the external costs of their carbon emissions by increasing the cost of pollution - D\) It offers financial incentives to companies to pollute less by reducing overall operational costs\ **Answer**: C **9. One of the issues with implementing global mutual coercion solutions for environmental problems, such as climate change, is the lack of a global governing body. This results in:** - A\) Uniform enforcement of environmental regulations across all countries - B\) Difficulty in setting and enforcing consistent global regulations, as companies can shift production to countries with lower standards - C\) Governments creating international agreements that are easily enforced at the local level - D\) No need for international agreements, as individual countries can solve climate issues independently\ **Answer**: B **10. According to the document, which of the following is a critical flaw in using regulations and taxes to manage common resources?** - A\) They are too complex to understand for individuals - B\) They can be undermined by loopholes, as seen in cases like the Volkswagen emissions scandal - C\) They completely remove the incentive for individuals to overuse resources - D\) They require no enforcement mechanism to be effective\ **Answer**: B **11. Which of the following design principles proposed by Elinor Ostrom is key in ensuring that local communities can manage common resources without needing external state intervention?** - A\) The establishment of multiple layers of governance, starting from the community level and extending upward - B\) The imposition of strict government sanctions on communities - C\) The creation of a uniform global policy for all local commons - D\) The exclusion of communities from decision-making processes\ **Answer**: A **12. What is a major issue with transferring best practices from one community to another when managing common resources?** - A\) Each community's environmental and social context is different, making it difficult to apply a one-size-fits-all approach - B\) Trust between communities is always strong, allowing easy rule transfer - C\) Best practices work equally well across all geographical regions - D\) Communities do not need to consider local conditions when applying best practices\ **Answer**: A