Asked by Christopher Thomas on May 28, 2024
Verified
Alex and Belle are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Belle wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. The forest is more likely to be harvested and replanted at a sustainable rate if
A) property rights are well defined and enforced.
B) property rights are weak or nonexistent.
C) there is no government protection of property rights and the parties can negotiate a settlement.
D) Belle is given sole ownership of the property.
Property Rights
Legal rights to possess, use, and dispose of assets including real property (land and buildings) and intellectual property.
Sustainable Rate
The level of output or activity that can be maintained over the long term without depleting resources or causing environmental or economic damage.
- Acknowledge the role of precise and upheld property rights in managing resources sustainably.
- Acknowledge the critical role that sustainable resource management plays in forestry and fisheries sectors.
Verified Answer
SS
sienna stephanMay 30, 2024
Final Answer :
A
Explanation :
Well-defined and enforced property rights encourage sustainable management of resources, as the owner has a long-term interest in maintaining the value of their property.
Learning Objectives
- Acknowledge the role of precise and upheld property rights in managing resources sustainably.
- Acknowledge the critical role that sustainable resource management plays in forestry and fisheries sectors.
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