One way the government of Alaska could prevent an inefficiently large production of crab fishing would be to:
A)subsidize fishermen to encourage competition.
B)sell exclusive licenses for the right to fish.
C)offer tax breaks for more efficient boats.
D)allow competition from foreign fishermen.

Question

Quizplus · Accepted Answer

By selling exclusive licenses for the right to fish, the government can limit the number of fishermen and boats in the industry, preventing an inefficiently large production of crab fishing. This would promote sustainability and balance in the industry while ensuring that the fishermen who are licensed have a fair chance at catching crabs. Subsidizing fishermen (A) may encourage overproduction and increase the number of boats on the water. Tax breaks (C) for efficient boats would not necessarily limit the number of boats or the amount of crabs caught. Allowing competition from foreign fishermen (D) could also increase the number of boats and cause overproduction.

One Way the Government of Alaska Could Prevent an Inefficiently