Question

Angus cattle and American buffalo are both animals that can provide humans with food and hides for shoes and clothing. Buffalo nearly became extinct in North America. Angus cattle were never endangered. Which of the following statements about these facts is correct?
There are clear property rights to the cattle, but not to the buffalo.
Buffalo meat was in greater demand than Angus steaks.
Ranchers have an incentive to protect and nurture the Angus cattle.
Buffalo were public goods; angus cattle were private goods.
Buffalo were private goods; angus cattle were public goods.

All statements are correct.
Only statement II is correct.
Only statements I, III, and IV are correct.
Only statements I, III, and V are correct.
Only statement III is correct.

Answer 1

Answer:

The statements which are correct about these facts are:

Only statements I, III, and IV are correct.

Explanation:

• The statement I is correct that there are clear property right to the cattle but not to the buffalo as these right define the ownership of something.
• The statement III is correct as Ranchers have an incentive to protect and nurture the Angus cattle that's why these cattle are not endangered species.
• The statement IV is correct as there are no clear property rights of buffalo so they are considered public goods but cattle are considered private goods.
• The statement II is not correct as buffalo meat was not in greater demand than Angus steaks.