Question

question 8 (1 point)
the tragedy of the commons will be evident when a growing number of hikers using the trails which leads to destruction of the ecosystem. how can this problem be corrected?
a) the government could provide more hiking trails.
b) the externality could be internalized by subsidizing back country camp sites.
c) the government could auction off a limited number of hiking permits.
d) the government could allow individual hikers to take responsibility for maintaining the trails.

Explanation:

The Tragedy of the Commons occurs when individuals, acting independently in their own self - interest, deplete a shared resource. To correct this, limiting access is key. Option a (providing more trails) may not solve the over - use problem as hikers may still over - use the new trails. Option b (subsidizing backcountry camp sites) is more about a different aspect (accommodation) and may not directly address trail over - use. Option d (letting individual hikers maintain trails) is unlikely to work as hikers have no incentive to invest in maintenance when they can free - ride. Option c (auctioning off a limited number of hiking permits) limits the number of users, which is a common way to address the Tragedy of the Commons by creating scarcity and reducing over - use.

Answer:

C. The government could auction off a limited number of hiking permits.