To Solve the Common Pool Problem in Fishing, Governments Can

question 160

Multiple Choice

To solve the common pool problem in fishing, governments can __________, or __________.

• A)impose a depletion tax; prohibit resource use entirely
• B)impose a depletion tax; restrict output
• C)introduce an offsetting positive externality; prohibit resource use entirely
• D)use a variable technology; impose a depletion tax
• E)restrict output; prohibit resource use entirely

---

Definitions:

Dividends Declared

A statement by a company's board of directors announcing the issuance of dividends to shareholders; it signifies an obligation to make the dividend payments announced.

Liability Account

An accounting record representing an entity's obligations to pay debts or provide services to other entities in the future.

Expense Account

An account that records the costs incurred by a business during a period, such as rent, utilities, and salaries.

Dividends Declared

Profits that a company's board of directors has decided to distribute to its shareholders, typically in the form of cash payments or additional shares.