Buffalo in the United States Almost Became Extinct While Cattle

question 72

Multiple Choice

Buffalo in the United States almost became extinct while cattle have never been close to extinction. The difference is due to

• A) the greater marginal value of a buffalo relative to a head of cattle, leading to greater "harvesting" of buffalo.
• B) the use of private property rights on cattle and common property rights on buffalo.
• C) the greater marginal value of a head of cattle relative to buffalo, leading to over-hunting of buffalo.
• D) the differences in size between the two animals, and the effect of size differences on the costs of hunting them.

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Definitions:

Opportunity Costs

The penalty of overlooking the next most advantageous option when a choice is made.

Efficient

Achieving maximum productivity with minimum wasted effort or expense.

Production Possibility Frontier

A graphical representation showing the maximum combination of goods and services that can be produced using all available resources efficiently.

Full Employment

A situation where all available labor resources are being used in the most economically efficient way.