Scenario: the Following Excerpt Is from Michael A

question 180

Multiple Choice

Scenario: The following excerpt is from Michael A. McPherson and Michael L. Nieswiadomy, "African Elephants: The Effects of Property Rights and Political Stability," Contemporary Economic Policy 18, no. 1 (2007) .
African elephant populations have declined by more than 50% over the past 20 years. International outrage over the slaughter led to a worldwide ban on ivory sales beginning in 1989, despite the objections of many economists and scientists, and of several southern African countries that have established systems of property rights over elephants. Far from declining, elephant populations in many of these countries have increased to levels at or above the carrying capacity of the ecosystem. This article estimates the determinants of changes in elephant populations in 35 African countries over several time periods. The authors find that, controlling for other factors, countries with property rights systems or community wildlife programs have more rapid elephant population growth rates than do those countries that do not. Political instability and the absence of representative governments significantly lower elephant growth rates.
-Refer to the scenario above.Which of the following is consistent with a solution to the elephant population decline described in the quote?

• A) Political instability is the main cause of decline in common pool resources.
• B) Prohibition of trade of some resources is necessary even when property rights for them are well established.
• C) Property rights could alleviate tragedy of commons problems in the absence of representative government.
• D) Property rights without an authority to enforce it may be ineffective.

---

Definitions:

Contingency

The possibility that future events may occur, often dependent on certain conditions or situations, which can influence planning and decision-making.

Open Systems

An approach that views organizations as entities that interact with their environment, adapting and changing in response to external factors.

Intellectual Capital

The intangible value of an organization's knowledge, skills, innovations, and processes, contributing to its competitive advantage.

Knowledge Resides

The concept that information and understanding are located within individuals, groups, or systems.