Unformatted text preview: 2. Indicate whether the following are private goods, club goods, common resource goods, or public goods: a. A bacon double cheeseburger. ($100) b. A hockey game between the Detroit Red Wings and Boston Bruins. ($100) c. A 4 th of July fireworks show. ($100) d. Swimming pool. ($100) e. Street lights. ($100) 3. Can you think of a reason why making cars safer during accidents would create negative externalities? ($500) (This is your challenge question!) 4. Two roommates are opposites. One enjoys playing Rock Band with his friends all night. The other likes to get to bed early to a get full eight hours of sleep. If Coase is right, the roommates have an incentive to solve the noise externality issue themselves. Name at least two solutions that will internalize, or eliminate, the externality. ($500)...
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- Externality, EXTRA CREDIT HOMEWORK, Coase, Detroit Red Wings, bacon double cheeseburger, Late-night road construction