Unit Three Review

14 06 2011

Topics Covered:

  • Market Failures
  • Externalities
  • Public Goods
  • Price Ceiling and Floors
  • Subsidies
  • Quotas (stop video after 1:55 – you don’t need to worry about the producer and consumer surplus or the deadweight loss)

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Fire Services – A Public Good?

15 04 2011

Watch the video and read the article on the Tennessee house fire.

In the comments to this post answer the following questions:

  1. Do fire services meet the criteria for a public good?
  2. Is there a free rider problem in this situation?
  3. Is there a problem with incentives in this situation?
  4. How should fire services be provided and funded?
  5. Should the fire fighters have put out the fire?

Due by the start of class on Monday.