For some fisheries in the U.S., the state or federal government imposes "gear restrictions" that limit the size of boats, nets, or other equipment that may be used to harvest the fish in a given body of water
The purpose of the gear restrictions is to: A) prevent everyone from using the common property resource (fish).
B) make it harder for other members of society to harvest the resource. This reduces the opportunity cost of the resource for other members of society, and the marginal social cost is closer to the private cost.
C) increase the private cost of using the resource so that the private cost is closer to the marginal social cost.
D) maintain traditional ways of harvesting fish, which is valuable for promoting tourism.
C
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In the above figure, when real disposable income equals 600
A) there is dissaving. B) real disposable income exceeds consumption. C) consumption is less than disposable income. D) consumption equals real disposable income.
Which of the following explains why the marginal cost pricing rule results in an economic loss for a natural monopoly?
A) The ATC curve is downward sloping throughout the relevant range, therefore the MC is lower than the ATC. B) The demand curve is downward sloping, therefore price falls as quantity increases. C) The MC is constant and equal to price. D) Because output is determined by setting MC equal to the price, consumer surplus is maximized. E) The firm's MR is always less than its price.
The U.S. Social Security tax is an example of a
A) progressive tax. B) proportional tax. C) premium tax. D) regressive tax.
Coins and paper money are:
A. credits of commercial banks and savings institutions. B. debts of the federal government and government agencies. C. credits of the federal government and government agencies. D. debts of commercial banks and savings institutions.