Asked by
Marina Pedreno
on Nov 26, 2024Verified
Overextraction of a resource in the present can occur because
A) there is a user cost.
B) there is an extraction cost.
C) users can benefit from conservation.
D) property rights are not clearly defined.
Overextraction
The process of extracting natural resources faster than they can be replenished, leading to depletion or degradation of those resources.
User Cost
The cost of using a durable good or capital, considering factors like depreciation and the opportunity cost of not investing the funds elsewhere.
Extraction Cost
The expenses associated with removing natural resources from the earth or sea, including labor, equipment, and regulatory compliance costs.
- Explain the role of property rights in the conservation and extraction of resources.
- Analyze the consequences of overextraction and poorly defined property rights on resource sustainability.
Verified Answer
HL
Learning Objectives
- Explain the role of property rights in the conservation and extraction of resources.
- Analyze the consequences of overextraction and poorly defined property rights on resource sustainability.