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:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.

Dividend Yield

A stock’s annual dividend divided by its current price.

Par Value

The face value of a bond or stock as designated in its charter, distinct from its market value.

After-Tax Basis

Financial calculations or comparisons made after accounting for the impact of taxes.