Which of the Following Best Describes the Reason for Over

question 6

Multiple Choice

Which of the following best describes the reason for over fishing in Canadian offshore fisheries?

• A) The private marginal cost incurred by current fishermen is less than the social marginal cost.
• B) Fishing has depleted fish stocks leading to smaller catches.
• C) The Canadian government encourages foreign fishing within the Canadian offshore boundary.
• D) The private marginal cost incurred by future generations of fishermen is greater than the private marginal cost incurred by current fishermen.
• E) None of the above can explain overfishing.

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Definitions:

Adjusting Entry

An accounting entry made in the books at the end of an accounting period to allocate income and expenditure to the correct period.

General Ledger

A complete record of all financial transactions over the life of a company, used to compile financial statements.

Accounting Cycle

The complete process of collecting, recording, and processing financial transactions of a company, from when the transactions occur, to their representation in the financial statements.