Answer: A. Alaska auctions a limited number of licenses to harvest king crab.
Explanation:
The options include:
A. Alaska auctions a limited number of licenses to harvest king crab.
B. The U.S. and Canadian governments remove trade barriers, which allows for more trade of products like king crab.
C. Alaska removes taxes on diesel fuel, which lowers the price of diesel.
D. Alaska subsidizes the purchase of crab boats.
The socially optimal level of output will be achieved when there's allocative efficiency. It is the level whereby market failure is curtailed.
The policy choice that might produce the socially optimal king crab harvest is for Alaska to auction a limited number of licenses to harvest king crab.
This will help in the reduction at which the resource is overused as there'll be regulation and reduction in the number of person that can harvest king crab.
Answer:
The answer is C.
Explanation:
As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.
As price level falls, value of money decreases because a unit of money will more of goods or services.
During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.
With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.
Answer:
c) wasteful rent-seeking
Explanation:
Rent-seeking is an economic activity that does not add any value, and it often includes lobbying and spending resources of your own company. This is a common practice when companies cannot find another feasible revenue stream, so they manipulate the distribution of various resources to gain wealth. This way, no value is created.
Answer:
$45,000
Explanation:
Computation for the projected benefit obligation
December 31 PBO($278,000)
December 31 Plan assets 233,000
Funded status($45,000)
Therefore the projected benefit obligation was underfunded at the end of 2021 by: $45,000
