Changing the Ownership of the Ocean from Common Property to Private

question 172

Multiple Choice

Changing the ownership of the ocean from common property to private property would

• A) ensure that this resource would be allocated in a more efficient manner.
• B) ensure that this resource would be allocated in a less efficient manner than under common property rights.
• C) not be economically desirable.
• D) result in no appreciable change in efficiency of utilization of this resource.

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Definitions:

Capital Balances

This term refers to the amounts of money partners in a partnership have contributed or that represents their share of ownership.

Replacement Cost

The current cost of replacing an asset with a similar new asset in terms of capability and function.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Partnership

is a legal form of business operation between two or more individuals who share management and profits.