One Way the Government of Alaska Could Prevent an Inefficiently

question 39

Multiple Choice

One way the government of Alaska could prevent an inefficiently large production of crab fishing would be to:

• A)subsidize fishermen to encourage competition.
• B)sell exclusive licenses for the right to fish.
• C)offer tax breaks for more efficient boats.
• D)allow competition from foreign fishermen.

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Definitions:

Investment Demand Curve

A graphical representation that shows the relationship between the rate of return on an investment and the total amount of investment undertaken.

Interest Rates

The percentage at which interest is charged or paid for the use of money, typically expressed as an annual percentage of the principal.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.

After-tax Profits

The amount of money a company retains after all income taxes have been subtracted from its earnings.