Scientists Have Said for Years Cod Was So Seriously Overfished

question 224

Multiple Choice

Scientists have said for years cod was so seriously overfished in European Union waters that there was a risk of extinction due to stock collapse. "To ensure this recovery… Ministers agreed a 10 percent cut in days at sea (for North Sea cod) ," EU Fisheries Commissioner Joe Borg stated in 2008. What is the goal of this policy?

• A) To reduce the number of fishing days to the point where marginal cost per day equals marginal benefit
• B) To reduce the number of fishing days to the point where marginal social cost per day equals marginal benefit
• C) To reduce the number of fishing days to the point where marginal social benefit per day equals marginal benefit
• D) To reduce the number of fishing days to the point where marginal social cost per day equals marginal social benefit

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Definitions:

Compensation Expense

The total cost incurred by an employer to provide salaries, wages, and benefits to employees, recognized in the financial statements.

Performance-Based Stock Option Plan

A program that grants employees options to purchase a company's stock at a set price, contingent on meeting specific performance benchmarks.

Annual Average Increase

The average yearly growth rate of a variable, such as sales or revenue, often used to measure and project performance trends.

Compensation Cost

The total amount of expense that a company recognizes for paying its employees, including wages, salaries, bonuses, and benefits.