Question at position 40 Which of the following represent negative externalities from the Fishbanks simulation (this question has multiple answers) Loss of fish species that could affect the health of the ocean ecosystemLoss of public services in the local communities as a result of lost tax revenue from the bankrupt fishing businessesImpact on those ocean species dependent on the fish populationClosing down of restaurants and other small businesses in the local communityThe loss of your jobs as managers of these fishing companies多项选择题

A

Loss of fish species that could affect the health of the ocean ecosystem

B

Loss of public services in the local communities as a result of lost tax revenue from the bankrupt fishing businesses

C

Impact on those ocean species dependent on the fish population

D

Closing down of restaurants and other small businesses in the local community

E

The loss of your jobs as managers of these fishing companies

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For this question, consider an asymmetric externality. The utility possibility frontier depicted in Figure 5 below maps the downstream party without the property on the vertical axis and the upstream party with the property right on the horizontal axis. Point B represents the outcome with exploitation of the ecosystem (Nash Bargaining impasse point) prior to Payments for Ecosystem Services (PES). Point E is the outcome with conservation but without PES and without a Pareto-efficient solution, and Point F is an outcome with PES and with a Pareto-efficient solution. Figure 5: Payments for Ecosystem Services Which line segment best represents the maximum willingness to pay (WTP) by the downstream party without the property right (vertical axis) for a move from E to F in Figure 5 above?

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