Which one of the following statements is false?
a. The economically optimal level of production is less than the open-access equilibrium level of production
b. The economically optimal level of production occurs at the maximum sustainable yield
c. Charging a license fee for access to a common resource will reduce the production level below the open-access equilibrium
d. The "tragedy of the commons" is more likely to occur as production effort increases
e. A license fee will reduce the incentives for entry into a market
Ans: b. The economically optimal level of production occurs at the maximum sustainable yield
You might also like to view...
Which one of the following policies would not reduce water use?
a. Full marginal-cost pricing b. Microirrigation technology c. Reusing wastewater for industrial uses d. Subsidizing irrigation systems e. Removing water subsidies
Which type of unemployment contributes to the natural rate of unemployment?
A. Unemployment of government workers. B. Real-wage unemployment C. Cyclical unemployment D. All of these contribute to the natural rate.
Dividing the total cost of n units of an activity by n reveals the:
A. average benefit. B. units per cost. C. marginal cost. D. average cost.
A U.S. senator states: "The minimum wage should be raised to give people a decent living wage." This quote is an example of:
a. A positive economic statement b. A hypothesis c. The fallacy of composition d. A normative economic statement