Alex and Ben Are Both Loggers Wanting to Harvest Timber

question 149

Multiple Choice

Alex and Ben are both loggers wanting to harvest timber from the same forest.Alex prefers to harvest and replant at a sustainable rate;Ben wants to harvest as many trees as possible to maximize short-run profit,and then move on.They face the same production costs. Refer to the information given.If property rights are well-defined and enforced:

• A) Alex could buy Ben's part of the land and harvest and replant in a sustainable manner.
• B) Ben could buy Alex's part of the land and harvest all the timber as quickly as possible.
• C) incentives to harvest and replant in a sustainable manner are greater than with no property rights.
• D) all of these could occur.

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Definitions:

Optic Nerve

A nerve in the head responsible for conveying images from the retina to the brain.

Perceptual Set

The tendency for a person's expectations, motivations, and experiences to influence their perception of stimuli.

Sensory Adaptation

The phenomenon of sensory receptors becoming less reactive to continuous stimuli over a period.

Subliminal Persuasion

A method of trying to influence people's thoughts, feelings, or actions without their conscious awareness.