Economics Homework Help

1. ANALYZE NEGATIVE EXTERNALITIES:

1. Does the free market provide solutions when negative externalities are present? Why or why not?
2. Based on a real world example, analyze the pros and cons of different policy options that the government can utilize to correct a negative externality.
3. In your opinion: demonstrate which property regime would be best suited to address the correction of a negative externality? Briefly explain why.

2. APPLY THE CONCEPT OF SUSTAINABILITY TO PRODUCTION:

1. Define ‘food security’.
2. Illustrate why the concepts of weak or strong sustainability are an important consideration in achieving food security?
3. Provide an example.

3. ILLUSTRATE THE IMPORTANCE OF THE DISCOUNT RATE:

1. What is the definition of the discount rate in environmental economics, what does it measure, and why is it important in the policy making process?
2. Suppose it costs $1000 to plant a forest that can be harvested in 30 years. At that time, it will produce a value of $5000 worth of wood. Is this investment a good idea (assume a discount rate of 5%)?
3. How does this analysis change with a discount rate of 6%?View keyboard shortcuts