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Influence of transferable property rights on individual decision making
1(a) Elucidate why will a person who has transferable (saleable) property rights in a business for which he is making decisions, be more influenced by the longer run effect of his decisions than if he did not have transferable property rights in the business?

(b) Elucidate the influence which transferable property rights versus non-transferable property rights, has on individual decision making.

2. "Long ago we stated the reason for labour organizations. We said which they were organized out of the necessities of the situation; which a single employee was helpless in dealing with an employer; which he was dependent ordinarily on his daily wage for the maintenance of himself also his family; which if the employer refused to pay him the wages which he thought fair, he was nevertheless unable to leave the employer also resist arbitrary also unfair treatment; which a union was essential to give labourers opportunity to deal on an equality with their employer." This statement was made by Chief Justice Charles Hughes, of the Supreme Court of the United States in the case of United States v. Jones also Laughlin, 1937. Compute Chief Justice Hughes' propositions for their meaning.

3. A large lake is stocked with excellent fish, but no one owns the fish or the lake. Only by catching the fish can you acquire ownership of the fish.

(a) Illustrate what do you think will be the average age of fish caught as compared to the age of fish in a privately owned lake?

(b) Which system will induce over fishing in the sense which more resources will be devoted to catching fish than the extra fish caught are worth? Elucidate why?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916368

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