Microeconomics: Private and Public Choice - With Aplia Access
16th Edition
ISBN: 9781337497480
Author: Gwartney
Publisher: Cengage
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Chapter 5, Problem 2CQ
To determine
Resource allocation to prevent terrorist attacks.
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Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all local people to enter the parks or to injure either the elephants or their habitat in any way. In a second approach, the government sets up national parks and designates 10 villages around the edges of the park as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park. Consider the different incentives of local villagers—who often are very poor—in each of these plans. Which plan seems more likely to help the elephant population?
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