The problem of overfishing in waters that are commonly owned can be solved when the government determines the total amount of fish can be removed from a given area during each fishing season. Then the fishermen
A) will not be able to fish.
B) can trade their rights (shares) to fish or not.
C) will externalize their private costs to the government.
D) will lower their private costs to fish.
B
Economics
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Within the Keynesian model, the multiplier effect tends to
a. smooth out the up- and down- swings of the business cycle. b. promote price stability. c. magnify small changes in spending into much larger changes in output and employment. d. reduce the impact of an increase in investment on output and employment.
Economics
An industry comprised of four firms, each with about 25 percent of the total market for a product, is an example of:
A. monopolistic competition. B. oligopoly. C. pure monopoly. D. pure competition.
Economics