Question

5. Another student suggests that in real life (as opposed to economic experiments), a fishery is depleted under free access because people don't understand what is happening. This student suggests that the government does not need to impose any limits on fishing. All it needs to do is make sure that people who fish take an economics course so that they understand how to act in a way that maximizes their self-interest. You must decide if economic analysis supports this student's claim. If everyone took an economics course, do you expect that they would adjust their behavior and keep the catch below the number of fish born each year? A. Yes. Because people respond to self-interest, they will all refrain from taking too many fish once they understand the situation. B. No. Even if they understand what the problem is for a large group, each person will be able to get more food by going fishing. Someone who understands the problem wants everyone else to stop fishing but personally wants to keep fishing. Continue without saving