第6解决方案工作表.pdfVIP

WORKSHEET: ECON 5103_Lecture 6, Andreas Ortmann, 2014_09_23 Please note: In the following I ask you repeatedly to “work” questions taken from the book. Your tutor will not collect your answers but might ask you to present your solution in the tutorial. Hence notes for yourself are sufficient. There is no expectation that you submit your answers in writing. The same applies to other tasks on this worksheet. It would be helpful if you let your tutor know in advance which questions gave you trouble. 2. Work the CONCEPTUAL QUESTIONS on page 202 BJMW. 1. Spillover costs: goods are over-allocated in the competitive market system. Spillover benefits: goods are under-allocated in the competitive market system. 2. See Figure 7.1 (a) demand=supply, equilibrium output=optimal output. 3. Pure public goods: indivisible and not subject to exclusion pr iple. Quasi-public goods: indivisible or not subject to exclusion pr iple. 4. Take the example of lighthouse. This non-exclusion characteristics giv se to the - rider problem. 5. ernment provide public goods with the money collected from taxes. Goods will be provided at the optimum level. 6. ernment will provide the public goods if marginal benefits are larger than marginal costs at the society level. 7. a. the allocation of property rights and the use of liability rules and lawsuits b. legislation c. emission fees d. markets for pollution rights. 8. The term “effluent society” recognises the central role yed by the environment in our economy 9. see answer of Q7 10. A market for pollution rights requires the establishment of lowable a