If Property Rights Are Assigned to a Common Resource,then the

question 58

Multiple Choice

If property rights are assigned to a common resource,then the

• A)government needs to set an ITQ to achieve efficiency.
• B)government needs to set a production quota to achieve efficiency.
• C)more than the efficient quantity is produced.
• D)marginal social benefit increases.
• E)marginal private cost becomes equal to the marginal social cost.

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Definitions:

Total Output

The complete quantity of goods or services produced by an economy or firm within a specific period.

Labor Cost

The total amount of money that a business pays to its employees, a significant component of the overall production cost.

Domestic Output

The sum of all products and services generated inside a nation's boundaries.

Migration

The movement of people from one place to another with the intentions of settling, permanently or temporarily, in a new location.