Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit, and then move on. They face the same
production costs. Refer to the information given. If property rights are well-defined and enforced:
A. Alex could buy Ben's part of the land and harvest and replant in a sustainable manner.
B. Ben could buy Alex's part of the land and harvest all the timber as quickly as possible.
C. incentives to harvest and replant in a sustainable manner are greater than with no property
rights.
D. all of these could occur.
Answer: D
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The tradeoff exhibited by the short-run Phillips curve is
A) higher price level with lower real GDP. B) lower inflation with lower unemployment. C) changing inflation with constant unemployment. D) higher inflation with higher unemployment. E) higher unemployment with lower inflation.
Explain why a exchange rate-based stabilization plan may result in a real appreciation?
What will be an ideal response?
As of the end of 1994 which of the countries in our survey had the smallest proportion of stock held by foreigners?
A) The United Kingdom B) The United States C) Japan D) Germany
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher