If the federal government declares a large part of Alberta a national park to be
ID: 1220487 • Letter: I
Question
If the federal government declares a large part of Alberta a national park to be available for recreation and enjoyment for all Canadians, the tradeoff is nothing, because the land belongs to all Canadians, not just Albertans nothing, because the land has no economic value the potential value of the land for grazing, oil and gas extraction, and other development the increased incomes of Alberta businesses from increased tourism Refer to the above table. When this game reaches a Nash equilibrium, what will the value of trade flow benefits be? Canada $35 and Mexico $285 Canada $65 and Mexico $75 Canada $140 and Mexico $5 Canada $130 and Mexico $275 Competitive free markets, in the absence of market failures, are efficient because all buyers are paying the most they are willing to pay all firms are maximizing profits the quantity exchanged maximizes the sum of consumer and producer surplus they eliminate scarcity If a monopolist has the opportunity to practice perfect price discrimination, it will produce the socially efficient level of outcome all consumer surplus will have been turned into deadweight loss all mutually beneficial trades take place and there is no deadweight loss Both (a) and (c) Suppose that the desired reserve ratio is 0.20 and the Bank of Canada buys $10M of government bonds in the open market. The potential increase in the money supply will be and the potential increase in loans will be $50M, $50M. $40M, $40M. $50M, $40M. None of the above are correct. Suppose that the desired reserve ratio is 0.20 and the Bank of Canada buys $10M of government bonds in the open market. The potential increase in the money supply will be and the potential increase in loans will be $50M, $50M. $40M, $40M. $50M, $40M. None of the above are correct.Explanation / Answer
1. If the federal govt declares a large part of Alberta National park to be available for recreation and enjoyment of all Canadian then though the income of Alberta will increase due to increased tourism but will also result in loss of natural capital in terms of loss of grazing ground and other natural resources available in the region since Alberta has number of national park in it like Banff National Park, Jasper National Park, Elk Island National Park, Waterton Lakes National Park, Wood Buffalo National Park, etc and the wildlife in these areas are varied and abundant, e.g. bears, mountain goats, bighorn sheep, deer, elk, and occasionally moose.
Thus opening up of such national park to a large number of people will definitely result in loss of natural capital therefore the correct answer is
c. potential value of the land for grazing, oil and gas extraction and other development