The federal government sets a catch limit (per person or per boat) for the species and imposes a tax on any extra fish that are caught is the best example of an economic approach to reduce overfishing for a fish species with a declining population
The economic approach to the PPI starts at the establishment level rather than at the industry level. According to the CPI theory, an establishment is the PPI equivalent of a family. An establishment is a business that carries out production or other productive activity in a particular area of the nation and is able to provide basic accounting data on the costs and quantities of the outputs it generates.
Annual catch restrictions and catch level monitoring assist minimize the risk of overfishing and guarantee the long-term biological and economic sustainability of American fisheries. A catch limit is determined annually through a multistep process.
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