Consider the market for cod, and then choose the correct statement. O A. Cod fishing is an example of the tragedy of the commons because fishers have no incentive to use it sustainably. OB. During the 1960s, cod fishing was at its efficient equilibrium due to an effective quota. OC. Cod is used sustainably because the cod replenish themselves. OD. Today's sustainable cod catch is greater than the sustainable cod catch in the 1960s.

Consider the market for cod, and then choose the correct statement. O A. Cod fishing is an example of the tragedy of the commons because fishers have no incentive to use it sustainably. OB. During the 1960s, cod fishing was at its efficient equilibrium due to an effective quota. OC. Cod is used sustainably because the cod replenish themselves. OD. Today's sustainable cod catch is greater than the sustainable cod catch in the 1960s.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 12SQP

See similar textbooks

Similar questions

Define the concept of a negative externality and explain the nature of the negative externality in the fishing markets i.e. describe how the self-interested actions of a fishing company might adversely affect third parties without their consent.
For a product with external benefits like vaccines (positive externality),which of the following is true?Select one: Oa. The market equilibrium results in too much of the good compared to what is optimalOb. The market equilibrium results in too little of the good compared to what is optimal.Oc. The market will not provide the good; it must be publicly funded.O d. Large economies of scale work as a barrier to firm entry.
Use the figure below to answer the following questions. Price (dollars per uni 25 20 15 10 S 0 50 100 150 200 250 Quantity (unit) Refer to Figure 5.3.1. If the quantity produced is 100, Figure 5.3.1 Select one: O A. marginal social cost exceeds marginal social benefit. OB. deadweight loss is zero. OC. marginal social benefit is minimized. OD. marginal social benefit exceeds marginal social cost. OE. production is efficient.
To protect the cod fishery off the northeast coast of the U.S., the federal government may limit the amount of fish that each boat can catch in the fishery. The result of this public policy is to a. shift the cod demand curve to the left. b. shift the cod demand curve to the right. c. shift the cod supply curve to the right. d. shift the cod supply curve to the left
An externality exists whenever O the economy can benefit from government intervention. a person engages in an activity that influences the well-being of a bystander and yet neither pays nor receives payment for that effect. O markets are not able to reach equilibrium. O a firm sells its product in a foreign market.
o ensure all students are protected from getting the flu this year, your school offers free flu shots. What type of externality exists in this example? Question 16 options: Negative consumption externality. Negative production externality. Positive production externality. Positive consumption externality. Neutral externality.
D Question 18 A production quota is set equal to the equilibrium quantity. At the quota quantity, marginal social benefit is O equal to; efficient O less than; efficient O greater than; efficient O less than; inefficient marginal social cost and the level of production is
B. Let’s consider the market for flour in a different town. Assume that it is efficient (i.e. that there are not external costs to producing flour, and no external benefits from consuming it). Price ($/lb) Quantity Supplied (thousands of lbs per day) Quantity Demanded (thousands of lbs per day) 1.5 8 14 2 9 13 2.5 10 12 3 11 11 3.5 12 10 4 13 9 What is the price and quantity of flour sold without government intervention. Graph this equilibrium. XXXX 2. Suppose that, alarmed by the inability of many poorer consumers to buy flour, the government institutes a $2/lb price ceiling. How much flour will suppliers wish to sell, and how much will buyers demand? How much flour will actually be sold? Show this outcome on the same graph you drew for question 1. XXXX 3. Describe, in one sentence each, three problems that this policy might create? Please do not simply copy down phrases from the textbook, but instead describe ways that…
This graph shows the market and social supply curves and the demand curve for the market for oil. The market for oil produces externalities in the form of pollution and environmental damage. The variables in the graph have the following values: A = $69, B = $38, C = 9, D = 33. Price A 00 Social Cost C D Market Cost Demand Quantity
How many fish should a commercial fisherman try to catch How many fish should a commercial fisherman try to catch in a day? Should he catch as many as possible or return to dock before filling the boat with fish? Under what economic circumstances should he not even take the boat out? How many fish should a commercial fisherman try to catch
What is producer surplus, and how is it measured? What is the relationship between the cost to sellers and the supply curve? 2. Why do flounder populations face the threat of extinction while goidfish populations are in no such danger The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the goverment imposes an excise tax on gasoline to account for the negative extemality that deivers impose on one another. Why might the private market not reach the socially optimal level of traffie on the road without the help of goverament? A key difference berween accountants and economists is their ditferent treatment of the cost of capital Does this cause an secouutants estumate of total costs to be higher or lower than an economist's estimate? Explain
3. Which of the following conditions holds in an economically efficient competitive market equilibrium? Select one: a. The marginal benefit of the last unit produced and consumed is maximized. b. The deadweight loss is positive but at a minimum. c. Producer and consumer surplus are exactly equal in size. d. There are no positive and no negative external effects from consumption and production.