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:

Paid-In Capital

The amount of money that shareholders have invested in the company through the purchase of its stock, above the par value of the shares.

Par Value

A nominal value assigned to shares of stock by the issuing company, which may or may not reflect the shares' market value.

Excess of Par

The difference between the issue price of a stock and its par value, representing additional paid-in capital for the company.

Authorized Stock

The maximum number of shares a corporation is legally permitted to issue, as stated in its articles of incorporation.