Scientists Have Said for Years Cod Was So Seriously Overfished

question 24

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. Why would overfishing occur in this common market?

• A) Fishing occurs until marginal cost per boat equals marginal social benefit which is inefficient.
• B) Fishing occurs until marginal social cost per boat equals marginal social benefit which is inefficient.
• C) Fishing occurs until marginal cost per boat equals marginal benefit which is inefficient.
• D) Fishing occurs until marginal social cost per boat equals marginal cost which is inefficient.

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Definitions:

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Depression

A severe and prolonged downturn in economic activity, marked by significant declines in income, employment, and production, often more severe than a recession.

Gross Investment

The total amount spent on purchasing or constructing new capital goods over a specific time period, without accounting for depreciation.

Net Investment

Net investment refers to the total amount spent on purchasing new capital minus the depreciation on existing capital, indicating the growth of a company or economy's productive capacity.