Multiple Choice
Which of the following best describes a public solution to externalities?
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7. Externalities
Public Solutions to Externalities
Multiple Choice
In the context of public solutions to externalities, how do resource managers typically achieve maximum sustainable yield?
A
By allowing unrestricted access to the resource for all users
B
By setting harvest limits equal to the growth rate of the resource population
C
By eliminating all government intervention in resource management
D
By maximizing short-term profits regardless of resource regeneration
Verified step by step guidance1
Understand the concept of maximum sustainable yield (MSY), which is the largest amount of a resource that can be harvested without reducing the resource's ability to regenerate over time.
Recognize that resource managers aim to balance harvesting with the natural growth of the resource population to avoid depletion.
Identify that the growth rate of the resource population represents the maximum amount that can be sustainably removed without harming future availability.
Set harvest limits equal to this growth rate, ensuring that the resource stock remains stable and can replenish itself.
Avoid unrestricted access or maximizing short-term profits, as these approaches can lead to overexploitation and depletion of the resource.
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