Chapter 10

1. Discus about Technological Spillover, Industrial Policy and Patent Protection. Express you understanding by explaining more about their importance and necessity. (Case study)

1. Please, explain the Tradable Pollution Permits comparing with Corrective Tax. Demonstrate your answers on graphs as well.

1. Explain Ronald’s theorem with an example. Moreover, the Coase theorem suggests that efficient solutions to externalities can be arrived at through bargaining. Under what circumstances does this fail to produce a solution?

1. Please, explain in detail all four Private Solutions to Externalities (Moral codes & social sanctions, Charitable organizations, Integrating different types of businesses, Contracting between parties).

1. Using a supply and demand diagram, demonstrate how a positive consumption externality leads to market inefficiency. Draw a graph with an example of Education and the Social Optimum.

1. Analyze thoroughly Public Policies toward externalities: Command & Control (regulation) and Market-Based Policies (Pigovian tax & subsidy) …

1. Explain three reasons why gasoline is Taxed so heavily. Congestion, accidents, pollution. (Case study)

34. Be ready to explain all Key Concepts on the last page of the chapter.

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