Japanese Fishermen Use Gill Nets to Catch Tuna with Great

question 34

Multiple Choice

Japanese fishermen use gill nets to catch tuna with great efficiency. Many environmentalists have objected to this practice since many marine animals such as dolphins and sharks are killed by the nets and discarded by the fishermen. Which of the following statements is most correct?

• A) a private solution can be reached through negotiation between the fishermen and the environmentalists
• B) a private solution is not practical due to the number of individuals affected
• C) the market price of tuna is higher than the socially optimum price of tuna
• D) a private solution to this problem would not affect the price of tuna

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Definitions:

Purchasing Power Parity

An economic theory and a method to compare the relative value of currencies, based on the cost of a standard set of goods and services in different countries.

Per Capita Income

The average income earned per person in a given area in a specified year.

Gini Coefficient

A measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, with 0 expressing perfect equality and 1 expressing maximal inequality.

Spending Power

Spending power, also known as purchasing power, is the ability of an individual or group to buy goods and services, often influenced by income levels and economic conditions.