a) Using an example explain why negative externalities lead to inefficient overproduction and discuss one way government can ensure a more efficient outcome.
b) Discuss using an example what are public goods and why does it lead to a free rider problem.
c) Why is fishing in the ocean, where there are no well-defined property rights, a concern regarding our ability to ensure sustainable use of our fishing stock? Research what is being done in New England coastal fisheries to ensure sustainable cod fishing.