Today we will learn about public goods and common resources. You should read the text chapter identified below in the homework section, watch the related videos for help in understanding this material, do the activities identified, in the homework section and be prepared for the Problem of the Day. This page contains all the information you need for today's class. Use the table of contents on the right to help you navigate.
Read Mankiw (Chapter 11).
Watch this video.
Problem of the Day: You will work cooperatively with your partner to construct a response to the following prompt.
Suppose the government decides to issue tradable permits for a certain form of pollution.
Does it matter for economic efficiency whether the government distributes or auctions the permits?
If the government chooses to distrtibute the permits, does the allocation of permits among firms matter for efficiency?
Lecture
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