What is the Coase Theorem? Under what conditions will the Coase Theorem break down?
How does a command-and-control policy differ from a market-based policy?
What are Pigouvian taxes and subsidies? How do governments decide when to levy a tax or provide a subsidy?
To provide national defense to a country, the supplier needs to hire soldiers and acquire weapons and other military equipments. Do you think it is possible that a private firm is able to supply national defense efficiently?
Compare a private good with a club good.
Why is it difficult for the market to deliver socially efficient quantities of goods like clean air or street lighting?
When does the free-rider problem arise?
How does the market demand curve for a private good differ from that of a public good?
What is meant by the tragedy of the commons? Use an example to explain your answer.