MULTIPLE$-$CHOICE QUESTIONS

Read the passage below; then answer the six questions that follow.

Elinor Ostrom and Resource Management

Human life depends on using natural resources such as water, land, and minerals and the plants and animals they sustain, as well as cultural resources such as knowledge and skills. Learning how to manage these resources wisely is$,$ therefore, a task of great importance to the survival of the human species. At least since the beginning of the twentieth century, the study of resource management has been dominated by two overarching ideas, one centering on government, the other on free$-$market economics. The former idea proposes that resources ought to be managed in the interest of the general public by the eentralized authority of the slate, its elected onicials, and bureaucratic agencies. The latter idea assumes that the most efficient management is

resource management depends on the active participation of stakeholders in formulating and enforcing rules for using the resource. This basic strategy applies to small groups as well as to complex organizations that are formed by a network of many teams of stakeholders with diverse interests who take part in a complex system of social division of labor. However large an organization is$,$ it can be designed to enable its members to participate in the management of resources and negotiate rules that protect their diverse interests. In this respect, the collaborative effort to achieve optimal use of resources does not require a centralized authority that is exercised cither by a political government or by private ownership.