Suppose Fischer Pond is a common-property resource—anyone can fish without having to pay for access. Locke Lake is privately owned—people who want to fish must purchase one of a limited number of permits from the lake's owner each season. According to the incentives that private ownership creates, which of the following would you expect to happen? Check all that apply. The owner of Locke Lake is likely to keep the lake clean and unpolluted. The owner of Locke Lake is likely to limit the number of fishing permits in order to maintain a plentiful stock of fish. Fischer Pond is less likely to experience a dwindling stock of fish each season.
Suppose Fischer Pond is a common-property resource—anyone can fish without having to pay for access. Locke Lake is privately owned—people who want to fish must purchase one of a limited number of permits from the lake's owner each season. According to the incentives that private ownership creates, which of the following would you expect to happen? Check all that apply. The owner of Locke Lake is likely to keep the lake clean and unpolluted. The owner of Locke Lake is likely to limit the number of fishing permits in order to maintain a plentiful stock of fish. Fischer Pond is less likely to experience a dwindling stock of fish each season.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose Fischer Pond is a common-property resource—anyone can fish without having to pay for access. Locke Lake is privately owned—people who want to fish must purchase one of a limited number of permits from the lake's owner each season. According to the incentives that private ownership creates, which of the following would you expect to happen?
Check all that apply.
The owner of Locke Lake is likely to keep the lake clean and unpolluted.
The owner of Locke Lake is likely to limit the number of fishing permits in order to maintain a plentiful stock of fish.
Fischer Pond is less likely to experience a dwindling stock of fish each season.
Expert Solution
Step 1
Common property resource are the natural resources which are owned and managed by the community or society as a whole rather than an individual. It can be used collectively by all and no one can be excluded from its use since it is available for free and not privately owned.
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