Benha University, Faculty of Commerce
English Section
Academic Year: 2024-2025
Level:2nd Grade
Benha and Obour Campus
ECO222: Economics of Natural Resources and Environment
DR: Nanis Fekry Tutorial (6)
1. What is a key feature of a common property resource?
A) It is non-rival and excludable
B) It is rival and non-excludable
C) It is always privately owned
D) It can be traded in the stock market
2. What is the difference between a common property resource and an open-
access resource?
A) Open-access resources are privately managed
B) Common property resources are unlimited
C) Open-access resources lack rules governing use
D) Common property resources are government owned
3. Which phase in a fishery’s total product curve indicates overfishing?
A) Constant returns phase
B) Diminishing returns phase
C) Absolutely diminishing returns phase
D) Increasing returns phase
4. In the diminishing returns phase of fishery use, what happens to the total
catch?
A) Increases at an increasing rate
B) Becomes zero
C) Increases at a decreasing rate
D) Remains constant
5. The “tragedy of the commons” refers to:
A) Overuse of public goods due to poor pricing
B) Sustainable management of public resources
C) Excessive government regulation
D) Efficient use of common resources
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Benha University, Faculty of Commerce
English Section
Academic Year: 2024-2025
Level:2nd Grade
Benha and Obour Campus
6. Why do individuals tend to overexploit common property resources?
A) Due to strict ownership laws
B) Because of limited access
C) Because no one has an incentive to conserve them
D) Due to subsidies by the government
7. What defines the economically efficient level of fishing effort?
A) When average cost equals marginal cost
B) When marginal revenue equals marginal cost
C) When total cost equals total revenue
D) When profit is at a minimum
8. What is a key challenge with voluntary agreements among fishers to reduce
fishing effort?
A) Government disapproval
B) Difficulty in monitoring weather
C) Economic incentive to violate the agreement
D) High administrative cost
9. What is the purpose of imposing a license fee in fisheries?
A) To increase boat numbers
B) To encourage fishers to use more fuel
C) To restructure incentives and reduce overfishing
D) To remove small-scale fishers
10. What is an Individual Transferable Quota (ITQ)?
A) A fishing license issued annually
B) A quota assigned by the UN
C) A catch right that can be sold or traded
D) A measure of ecological damage
11. What is one benefit of auctioning fishing permits rather than setting a
license fee?
A) It reduces the number of fishers
B) It avoids the need for government knowledge of costs
C) It ensures free entry into the market
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Benha University, Faculty of Commerce
English Section
Academic Year: 2024-2025
Level:2nd Grade
Benha and Obour Campus
D) It increases ecological damage
12. What conclusion is drawn regarding the role of government in fishery
management?
A) Government should not intervene in fisheries
B) Government intervention is required for efficiency and sustainability
C) Free markets always regulate fisheries best
D) Only private firms should manage fisheries