Publicly owned resources will always be abused. Take the example of ca

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Publicly owned resources will always be abused. Take the example of cattle grazing. Where the individual has free access to publicly owned rangeland, he or she always has an incentive to graze more and more cattle regardless of the consequences, because the benefits are captured by the individual grazer while the costs of reduced range quality are borne by all taxpayers. Private landowners are less likely to abuse their own land, however, because they must pay the entire cost.

Which one of the following could be best supported by the same type of reasoning as that exhibited in the passage?

(A) The supply of beverages at the annual office picnic will last longer if people pay for them on a per-beverage basis rather than everyone in the office being charged a flat fee.

(B) A math teacher provides his students with after-school tutoring on several days because no single day is good for everyone.

(C) A tennis club starts charging flat annual membership fees instead of pay-as-you-play court fees in order to ensure a regular club income.

(D) A social service agency varies its charges for services because some people are able to pay more than others.

(E) A tobacco tax is instituted in order to fund improvements in public education.

exc4libur · Answer

ARGUMENT
  pub resources will always be abused, because only the individual captures the benefits, while the taxpayers are borne with the costs.
  private resources will not be abused, because the individual owner captures and is also borne with the costs, thus conserving the land.

Ans (A) rather than the office paying a flat fee (taxpayers), individuals should pay per beverage, thus conserving beverage supply.

unraveled · Answer

Publicly owned resources will always be abused. Take the example of cattle grazing. Where the individual has free access to publicly owned rangeland, he or she always has an incentive to graze more and more cattle regardless of the consequences, because the benefits are captured by the individual grazer while the costs of reduced range quality are borne by all taxpayers. Private landowners are less likely to abuse their own land, however, because they must pay the entire cost.

Which one of the following could be best supported by the same type of reasoning as that exhibited in the passage?

(A) The supply of beverages at the annual office picnic will last longer if people pay for them on a per-beverage basis rather than everyone in the office being charged a flat fee.

(B) A math teacher provides his students with after-school tutoring on several days because no single day is good for everyone.

(C) A tennis club starts charging flat annual membership fees instead of pay-as-you-play court fees in order to ensure a regular club income.

(D) A social service agency varies its charges for services because some people are able to pay more than others.

(E) A tobacco tax is instituted in order to fund improvements in public education.

Both A and C are close but since C is not saying anything about abusive usage of tennis court. An additional assumption is required to support the reasoning that court would be abusively used if flat annual membership fees is charged.
A, on the other hand, uses similar reasoning as that of argument but reverses the sequence. For beverages to last longer people must pay on a per-beverage basis instead a fat fee which might have resulted in abusive usage.

IMO Answer A.

shameekv1989 · Answer

When a collective or a group of people pay for some resource then there is more incentive for an individual to misuse that property when allowed to do so freely. As against a situation when that same individual has to take all the expenses for that property on its own.

Answer - A

It says that supplies are misused when all the people in office pay for beverages as flat fees. There is more incentive for an individual to drink a beverage since it has already been paid for and he will continue drinking until the stock lasts

They, however, would last longer when an individual has to pay for his own beverage.

chaitralirr · Answer

Publicly owned resources will always be abused. Take the example of cattle grazing. Where the individual has free access to publicly owned rangeland, he or she always has an incentive to graze more and more cattle regardless of the consequences, because the benefits are captured by the individual grazer while the costs of reduced range quality are borne by all taxpayers. Private landowners are less likely to abuse their own land, however, because they must pay the entire cost.

Stimulus: Publicly owned resources for which everyone pays the maintenance fee will be over used as compared to privately owned lands. The author quotes the example of grazing land in which the cattle owners will over graze or abuse the common land as compared to privately owned land because everybody pays the maintenance cost for the land

IMO A: similar analogy to the author is used here by stating that the beverage would last longer if per beverage was cost rather than everyone in the office being charged.

Which one of the following could be best supported by the same type of reasoning as that exhibited in the passage?

(A) The supply of beverages at the annual office picnic will last longer if people pay for them on a per-beverage basis rather than everyone in the office being charged a flat fee.

(B) A math teacher provides his students with after-school tutoring on several days because no single day is good for everyone.

(C) A tennis club starts charging flat annual membership fees instead of pay-as-you-play court fees in order to ensure a regular club income.

(D) A social service agency varies its charges for services because some people are able to pay more than others.

(E) A tobacco tax is instituted in order to fund improvements in public education.

nitin53 · Answer

I marked the right answer but i want to know why Option C is not correct,so explain ths question in simple way

napolean92728 · Answer

IMO, the reason to eliminate option C is it's focus on financial stability of the club rather than preventing overuse of a shared resource. In fact, a flat fee might encourage more usage for everyone rather than some people, for e.g. grass in the rangeland can get depleted if overused therefore only a few people who have overused the resources received the benefit and the same goes with supply of beverages only those who drank excessively received the benefit, depriving others. Whereas even if someone over play the tennis court won't get depleted.

Publicly owned resources will always be abused. Take the example of ca

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Publicly owned resources will always be abused. Take the example of ca

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