The Problem of Overfishing in Waters That Are Commonly Owned

question 90

Multiple Choice

The problem of overfishing in waters that are commonly owned can be solved when the government determines the total amount of fish can be removed from a given area during each fishing season. Then the fishermen

• A) will not be able to fish.
• B) can trade their rights (shares) to fish or not.
• C) will externalize their private costs to the government.
• D) will lower their private costs to fish.

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Definitions:

Categorical

Relating to data that can be divided into specific groups or categories that are mutually exclusive.

Explanatory Variables

Variables in a statistical model that are thought to influence or predict changes in a response variable.

Binomial Outcome

A situation in statistics where an experiment or trial results in one of two outcomes, often termed success or failure.

Odds

A ratio representing the likelihood that an event will occur compared to the likelihood that it will not.