Sailboats and Motorboats Share Emerson Lake, Which Nobody Owns

question 95

Multiple Choice

Sailboats and motorboats share Emerson Lake, which nobody owns.The sailors say the motorboats are a hazard; the motorboaters say it is the other way around.Frequent collisions occur, with many injuries and some deaths every year.If the City of Emerson were to buy the lake itself,

• A)the problem would be solved, because the lake would have an owner
• B)the problem would be solved, because no one could use the lake
• C)the city would still have to assign property rights so that use of the lake would be efficient
• D)the city would give the right to use the lake to the larger group
• E)the city would give the right to use the lake to the richer group

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Definitions:

Excise Tax

A tax levied on the production of a specific product or on the quantity of the product purchased.

Income Tax

A tax levied by governments on individuals' or entities' income, which can vary depending on the amount of income earned.

Regressive Tax

A tax where the tax rate decreases as the taxpayer's income increases, placing a heavier burden on lower-income individuals.

Economy

A system of production, distribution, and consumption of goods and services among individuals and organizations in a society.