Tuna Fish Are Being Driven to Extinction Because of Overfishing

question 158

Multiple Choice

Tuna fish are being driven to extinction because of overfishing. If all the fishermen know about this, why don't they fish less to slow down the extinction?

• A) The kind of fishing equipment that is used does not allow for smaller catches.
• B) There is a lack of well-defined property rights over the stock of tuna fish in the sea.
• C) The fishermen do not realize that their way of life will also become extinct.
• D) Their governments have not considered tradable allowances as a solution.

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Definitions:

Variable Factory Overhead

Costs of production that fluctuate with the level of output, including utilities and materials not directly tied to a product's manufacture.

Controllable Variance

The difference between actual and budgeted figures that is within the control of a manager, used for assessing performance.

Controllable Variance

The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and materials used in the production process.