What is an individual transferable quota (ITQ)? How can it be used with the total allowable catch (TAC) for making fishing more efficient and sustainable?
What will be an ideal response?
Individual transferable quotas (ITQs) also limit the individual catch size by a fisher to a specified quantity. This policy provides disincentives use bigger boats under a TAC system alone because each fisher has a specified catch limit, and thus it reduces fishing costs. The ITQs issued will also add up to TAC limit so the fish population can be sustained. It also encourages fishing to be done at the least cost because ITQs are tradable quotas. An ITQ held by a fisher who is less efficient at fishing can be traded to one who is more efficient at fishing. The overall result is that there will be efficiency gains for society and fishing will be less costly.
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Brian is running for state senator and if elected, pledges to improve economic growth. His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education
His plan is likely to A) slow economic growth because it includes a provision for private education. B) have no effect on economic growth because property rights are not changed. C) speed economic growth as the quality of resources improve. D) fail because the provision for private education limits government involvement in education. E) have no effect on economic growth because government spending cannot affect the economic growth rate.
Coupons represent a form of price discrimination because they offer a low-cost way for firms to
A) identify customers with apparently more elastic demand and offer them a lower price. B) retain loyal customers who are not price sensitive. C) offer discounts to consumers who buy larger quantities. D) perfectly price discriminate.