8. The interaction of individual choices Because eels are highly endangered as a species, many governments enact laws prohibiting fishing along their migration route. Initially, eel fishers complain about this restriction on the locations they can fish, but after a while they notice that the number of eels swimming outside regulated areas is much higher than it was before. With the laws in place, eel fishers end up catching a greater quantity of eels than they did prior to the enactment of the laws. Which of the following principles of economic interaction best describes this scenario? Markets allocate goods effectively. When markets do not achieve efficiency, government intervention can improve overall welfare. There is a tradeoff between equality and efficiency. Markets usually lead to efficiency.

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8. The interaction of individual choices
Because eels are highly endangered as a species, many governments enact laws prohibiting fishing along their migration route. Initially, eel fishers
complain about this restriction on the locations they can fish, but after a while they notice that the number eels swimming outside regulated areas
is much higher than it was before. With the laws in place, eel fishers end up catching a greater quantity of eels than they did prior to the enactment of
the laws.
Which of the following principles of economic interaction best describes this scenario?
O Markets allocate goods effectively.
O When markets do not achieve efficiency, government intervention can improve overall welfare.
O There is a tradeoff between equality and efficiency.
O Markets usually lead to efficiency.
Transcribed Image Text:8. The interaction of individual choices Because eels are highly endangered as a species, many governments enact laws prohibiting fishing along their migration route. Initially, eel fishers complain about this restriction on the locations they can fish, but after a while they notice that the number eels swimming outside regulated areas is much higher than it was before. With the laws in place, eel fishers end up catching a greater quantity of eels than they did prior to the enactment of the laws. Which of the following principles of economic interaction best describes this scenario? O Markets allocate goods effectively. O When markets do not achieve efficiency, government intervention can improve overall welfare. O There is a tradeoff between equality and efficiency. O Markets usually lead to efficiency.
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