To Solve the Common Pool Problem in Fishing, Governments Can

question 160

Multiple Choice

To solve the common pool problem in fishing, governments can __________, or __________.

• A)impose a depletion tax; prohibit resource use entirely
• B)impose a depletion tax; restrict output
• C)introduce an offsetting positive externality; prohibit resource use entirely
• D)use a variable technology; impose a depletion tax
• E)restrict output; prohibit resource use entirely

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Definitions:

Equality

In accounting, the concept that the sum of debits must equal the sum of credits in a transaction.

Subsidiary Ledger

A detailed ledger that contains all the transaction details of a specific account, which is summarized in the general ledger.

Accounts Payable

Liabilities or money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

General Ledger

A comprehensive record of all financial transactions that occur within a company, organized by account.