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.
Answer: B
Economics
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In the medium run, an increase in the rate of growth of nominal money will cause
A) lower nominal and lower real interest rates. B) lower nominal interest rates and no change in the real interest rate. C) an increase in inflation and an increase in output growth. D) a proportionate increase in inflation.
Economics
According to Scenario 4-1, country A has net exports of:
a. $18 million. b. $8 million. c. $13 million. d. $9 million. e. $6 million.
Economics