Overfishing Along the Coastline of Helsking Village Led the Government

question 20

Multiple Choice

Overfishing along the coastline of Helsking village led the government to impose a fee on the boats used for fishing. The fishermen were charged $50 on each boat they sent out for fishing. The following table shows the total pounds of fish caught per hour and the number of boats used for fishing.Table 13.2

-If the government is successful in internalizing the external costs of production in a market, then:

• A)social costs will equal private costs.
• B)an inefficient level of output will be produced.
• C)social costs will exceed private costs.
• D)social costs will be less than private costs.
• E)social costs will fall to zero.

---

Definitions:

Consumption

The process by which individuals or households use goods and services to fulfill their needs and wants.

Income

Money that an individual or business receives, typically as a return on investment, labor, or sale of goods and services.

Interest Rate

The fraction of a loan incurred as interest by the borrower, often represented as an annual percentage of the remaining loan balance.

Savings

The portion of income not spent on current consumption, typically set aside for future use or investment.