Changing the ownership of the ocean from common property to private property would
A) ensure that this resource would be allocated in a more efficient manner.
B) ensure that this resource would be allocated in a less efficient manner than under common property rights.
C) not be economically desirable.
D) result in no appreciable change in efficiency of utilization of this resource.
Answer: A
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According to this Application, during the late 1980s, Argentina pegged its currency to the U.S. dollar. When the dollar appreciated sharply on world markets after 1995, this caused a large trade deficit in Argentina because
A) Argentina could no longer afford to purchase as many imported products. B) Argentinean exports grew relative to the nation's imports. C) U.S. exports to Argentina declined. D) Argentinean exports became relatively more expensive in global markets.
What statement best describes the colonial economic experience?
a. The agricultural sector was initially a small portion of the economy, but quickly grew to be the largest sector. b. By the time of the American Revolution, the U.S. colonial economy was larger than about 70 percent of other nation's economies. c. The U.S. colonial economy was particularly hurt during the Seven Year's War. d. Economic growth was irregular and averaged about 0.45% per year.
The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
a. rational expectations school. b. neo-Keynesian school. c. supply-side school. d. new classical school. e. classical school.
If the Federal Reserve wished to engage in contractionary monetary policy, it could
A. purchase government debt. B. raise the federal funds rate target. C. lower the reserve ratio. D. lower the primary credit rate.