A Village Has Five Residents,each of Whom Has Accumulated Savings

Question 93
Multiple Choice

A village has five residents,each of whom has accumulated savings of $50.Each villager can use the money to buy a government bond that pays 10% interest per year or to buy a year-old goat,send it onto the commons to graze,and sell it after one year.The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons,which in turn depends on the number of goats sent onto the commons,as shown in table below. img Refer to the information given above.Left to private incentives,the villagers earn _____ than when goat grazing is determined collectively. A) less total income B) more total income C) the same amount of total income D) either more or less total income depending on the market price of goats