LESON5A

LESON5A - Papa knows best Ch 5 - Public goods Pres Bush...

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Econ 275 - Public Finance - Fall 1992 - 9/15/92 - Lesson #5 - leson5a.275-- Page -- Outline: Project (10-15 minutes) Handout Timetable (proposal next week, done on first day of Divide up into groups & record: 4-6 people Let divide up alone. 6 Max Then for the remainder pick a topic and ask who would be interested. Alternative? Ch 3- Economic rationale for government Public goods -- discuss in more detail later Externalities Incomplete markets Imperfect information Massive unemployment Redistribution Merit goods--seat belts, airbags, elementary education.
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Unformatted text preview: Papa knows best Ch 5 - Public goods Pres Bush announcement selling National defense to Mercenaries Inc. Privatization. What would happen. Responses Key Characteristics Not possible to exclude Not desirable to exclude(mc of consumption is 0==> price=marginal cost). Tie into discussion of efficiency. Pareto improving to have everyone consume all that is available. Not possible to exclude: discuss, examples Free Rider problem., two example from 380 of prisoner's dilemma. Not desirable to exclude: discuss, examples...
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