The problem of overfishing in waters that are commonly owned can be solved when the government determines the total amount of fish can be removed from a given area during each fishing season. Then the fishermen
A) will not be able to fish.
B) can trade their rights (shares) to fish or not.
C) will externalize their private costs to the government.
D) will lower their private costs to fish.
Answer: B
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Refer to the scenario above. What is the price effect of the price change?
A) $1,750 B) $2,000 C) $3,750 D) $5,400
Barriers to entry
a. prevent monopolies from earning profit in the long run b. prevent monopolies from earning profit in the short run c. may allow monopolies to earn profit in the long run d. prevent government from regulating a monopoly e. prevent a natural monopoly from raising its price
Which of the following could explain why hockey players earn such high income?
a. All of the following are correct. b. Average careers are very short; the chances of being unemployed are greater than in many other jobs. c. The income effect encourages them to work more as the wage increases. d. Many people want to become hockey players. e. The threat of injury makes the job more exciting than other jobs.
________ refers to the fact that both human and financial capital leave developing countries in search of a higher rate of return.
A. Capital flight B. Urbanization C. Outsourcing D. Divestiture