ACTIVITY #3: NEW SENSE INC VS FISH TILL U DROP (10 POINTS)
In Activity
#3, you will explore one of the world's most perplexing and serious
problems: How can modern man provide for the needs and wants of the world's
growing population while holding damage to productive resources to a
minimum? You will look at a major debate among economists: whether the
Coase Theorem or a Pigouvian tax works more effectively in cases
involving environmental use and misuse. The debate among economists
currently rages stronger than ever. Pigouvians accuse Coasians of being
ultra right-wing conservatives who would provide the rich and powerful with
unfair advantages in the use of common or public property. Coasians claim
that Pigouvians are disloyal to the fundamental economic principle that
well-defined property rights always
bring about the most
efficient and economic use of a resource. Now its your turn to decide.
A. Read
The Basics linked at the top of this page. Make certain you
understand the concepts.
B. Read
Lake Smiley linked at the top of this page. As you read, look for
examples of the basic concepts.
C. Look
at two different opinions concerning how such pollution problems might be
solved.
D. Decide
which method Coase Theorem or Pigouvian Taxes would provide the best
solution for cleaning up Lake Smiley. Write a brief essay explaining which
solution you chose and why. Be careful to apply (at the least) the concepts
on The Basics page market failures, public goods, externalities and
etc. (Application does not mean you throw in a word or definition at some
point. There are examples in the story of each of the basic concepts and you
should be able to identify them.) Your
essay should be thorough, specific, include relevant concepts from the
course material and be free of spelling & grammar errors.
By the deadline shown in the Course Schedule on the main page of the
syllabus:
-
Send your
essay in the body of a new
email to dramyglenn@earthlink.net.
Put only your name and Activity #3 at the beginning of your
email.
Be careful to use the correct subject line.
Late essays will lose one point per day late, including weekends and
holidays.
READ THE FOLLOWING SECTION FROM THE MARGIN NOTES.
