To solve the common pool problem in fishing, governments can __________, or __________
a. impose a depletion tax; prohibit resource use entirely
b. impose a depletion tax; restrict output
c. introduce an offsetting positive externality; prohibit resource use entirely
d. use a variable technology; impose a depletion tax
e. restrict output; prohibit resource use entirely
B
You might also like to view...
What factors are not important in determining exchange rate fluctuations in the long run?
A) preferences for domestic and foreign goods across countries B) speculating in currency markets C) relative price levels across countries D) relative rates of productivity growth across countries
Covered interest arbitrage ensures
A) exchange parity. B) purchasing power parity. C) interest parity. D) All of the above.
The tendency of changes in asset prices to affect spending on consumption goods is called the ________ effect.
A. multiplier B. substitution C. income D. wealth
A state of rational ignorance
A) is a reflection of too little education. B) makes sense only if information is a free good. C) exists only in ideal representative democracies. D) makes sense when the costs of becoming informed are greater than the benefits. E) none of the above