Over-fishing of common fishing grounds happens because fishing grounds are a common property and social and private incentive are the same
Indicate whether the statement is true or false
False. It is the fact that social and private incentives diverge that creates the problem. The profit-maximizing quantity of fish for the fishermen exceeds the social optimal quantity of fish that will maintain the stock. Over-fishing (and maybe extinction) will result.
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Which one of the following expressions best states the idea of opportunity cost?
A. "He who hesitates is lost." B. "All that glitters is not gold." C. "A penny saved is a penny earned." D. "There is no such thing as a free lunch."
Which statement is true?
A. There was a great deal of stagflation in the 1960s. B. We had full employment for most of the 1980s. C. We have had twelve recessions since the beginning of 1945. D. None of the choices are true.
Refer to the scenario above. What is the probability of getting heads?
A) 25% B) 50% C) 75% D) 100%
The following is NOT an example of a potential monitoring solution to moral hazard
a. a pre-hire typing test for clerical employees b. closed circuit TVs throughout a warehouse c. GPS tracking devices in repair trucks d. listening in on call center conversations