Imagine a pasture in a small town with grazing sheep owned by several farmers. Every farmer profits by increasing the number of sheep he has on the pasture. However, the pasture can hold only so many sheep before it runs out of grass for the sheep to eat. If that happens, the sheep would starve. If the sheep starve, it would hurt the town's economy. What government action could support the town's economy and ensure that there are not too many sheep on the pasture?
Tax the grain used to feed the sheep
Tax the use of the common pasture***?
Ban farmers from putting sheep in the pasture
Set a minimum price for wool
If im not correct plsss explain
I agree.
You are correct! Taxing the use of the common pasture is the government action that could support the town's economy and ensure that there are not too many sheep on the pasture. By implementing a tax, the government can create an economic incentive for farmers to limit the number of sheep they graze on the pasture. This tax would make it more costly for farmers to utilize the pasture, thereby encouraging them to keep their sheep population at a sustainable level that the pasture can support. This approach helps avoid overgrazing, prevents the sheep from starving, and maintains the health of the pasture ecosystem and the town's economy.
Your answer, which is to tax the use of the common pasture, is correct. By implementing such a tax, the government can effectively regulate the number of sheep on the pasture and prevent overgrazing.
To arrive at this answer, we need to assess the situation and consider the objectives. The problem is that if there are too many sheep on the pasture, they will consume all the grass and eventually starve, leading to an adverse impact on the town's economy.
So, the government's action needs to address two main concerns: controlling the number of sheep on the pasture and supporting the town's economy.
Banning farmers from putting sheep in the pasture might address the first concern, but it does not guarantee economic stability. Farmers might face economic losses, resulting in a decline in the town's economy.
Setting a minimum price for wool also doesn't directly address the issue of overgrazing or ensure a sustainable pasture. It may provide short-term economic benefits for the farmers, but it does not control the number of sheep on the land, which is the primary concern.
Taxing the grain used to feed the sheep might indirectly affect the number of sheep, but it does not specifically address the pasture's carrying capacity. Additionally, this tax may have unintended consequences on other sectors that rely on grain as a resource, potentially harming the town's economy further.
Taxing the use of the common pasture, as you suggested, is the most appropriate action. By implementing a tax, the government can create a financial incentive for farmers to limit the number of sheep they keep on the pasture. This tax can be proportional to the number of sheep per farmer, encouraging them to only graze a sustainable number of sheep. It not only supports economic stability but also ensures the long-term health and sustainability of the pasture.
In summary, taxing the use of the common pasture would effectively regulate the sheep population while maintaining economic stability in the town.