Common Ownership of Resources

question 39

Multiple Choice

Common ownership of resources:

• A)is a system by which the government allocates the rights to harvest renewable resources.
• B)may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.
• C)is an environmentally effective method of correcting for an externality problem in renewable resource conservation.
• D)efficiently controls the harvesting of renewable resources.
• E)usually helps in preventing market failures.

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Definitions:

Disposable Income

The amount of money a household or individual has available to spend or save after income taxes have been deducted.

Aggregate Demand

The combined requests for goods and services across an economy, factoring in the prevailing price level for a set period.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy public needs or are used to produce other goods and services.

Planned Aggregate Expenditures

The total planned spending in an economy, including consumption, investment, government purchases, and net exports at a given level of income.