Which of the Following Statements About Private and Common Property

question 18

Multiple Choice

Which of the following statements about private and common property rights is FALSE?

• A) Air is available at a marginal cost of zero.
• B) Common property rights lead to rapid depletion of the resource.
• C) Animals with clear private property rights are not on the endangered species list.
• D) Clean,breathable air is available at a marginal cost of zero.
• E) Private property rights prevent the rapid depletion of the resource.

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Definitions:

Subsidy

A financial contribution granted by the government to reduce the production costs and encourage the supply of certain goods or services.

Quantity Tax

A tax levied on a specific quantity of a good or service, as opposed to its value, affecting the supply and potentially the price.

Supply Schedule

A table that shows the relationship between the price of a good and the quantity supplied.

Tax Rate

The percentage at which an individual or entity is taxed on their income or the value of goods and services.