Business Administration 1220E Study Guide - Quiz Guide: Common Fisheries Policy, Excludability, Fisheries Management

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Alexander Miller

Document Summary

No technical solution to the problem of population growth. Malthus: population grows exponentially, but resources are finite. Optimum population is less than the maximum. Goods are incommensurable yet natural selection commensurate incommensurables. Assumption smith laissez-faire produces the best outcome not correct. Tragedy of the commons: example of the pasture. Negative and positive aspect of utility: increment of one animal +1 and overgrazing is shared by all the negative utility is only a fraction of -1. Tragedy: each man is locked into a system that compels him to increase his herd without limit in a world that is limited. Private property or public property with restricted rights. Pollution: same utility calculation prevent pollution by coercive laws or taxing devices (more expensive for polluter to discharge) Principle of morality: the morality of an act is a function of the state of the system at the time it is performed. Best way to accomplish temperance = administrative law + corrective feedbacks: establish authority.