One reason that some whales were hunted close to extinction is that no one can claim ownership of a whale until it is killed. If property rights to the whale population were established:
a. then whales would surely be hunted to extinction.
b. the owners would have the incentive to ensure a sustainable yield of whales, so the whale population could recover.
c. no one would hunt whales.
d. the price of whales would be kept artificially low so that trade in whales would become unprofitable.
e. the whales would be hunted to extinction only when the price is high and it is profitable to trade in whales.
b
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Relative prices are an effective way of informing producers of
A) their marginal benefits of production. B) their marginal costs of production. C) both A and B. D) none of the above.
Suppose there is an increase in the supply of a good. Which of the following statements is true?
A. The closer the demand curve is to being vertical, the larger the decrease in equilibrium price, and the smaller the increase in equilibrium quantity. B. The closer the demand curve is to being horizontal, the larger the decrease in equilibrium price, and the smaller the increase in equilibrium quantity. C. The closer the demand curve is to being vertical, the smaller the decrease in equilibrium price, and the larger the increase in equilibrium quantity. D. The closer the demand curve is to being vertical, the larger the increase in equilibrium price, and the smaller the decrease in equilibrium quantity.