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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Economic efficiency definitely occurs whenever
A) a firm cannot increase its output without increasing all its inputs. B) there are no implicit costs. C) the most modern technology is used in the production process. D) the firm produces a given output at the least cost.
The theory of the communists could be summed up in a single phrase: ______________________________.
Fill in the blank(s) with the appropriate word(s).
Typical estimates of the sacrifice ratio suggest that a one-percentage-point reduction in the inflation rate requires
a. a sacrifice of 5 percent of annual output. b. a sacrifice of 5 percent of government spending. c. an increase in the unemployment rate of 5 percentage points. d. a 5 percent increase in the government budget deficit.
The largest mergers have been in the ___________ industry.
Fill in the blank(s) with the appropriate word(s).