Econ agg

Econ agg

ECON 380 Assignment One (Version A) This assignment is worth 10% of your final grade. Submit Assignment 1 after you complete Unit 2 (Lesson 6). Answer each of the following five questions clearly and completely. Each question is worth 20 marks. 1. Critically evaluate the following claim: ?Satisfying the Maximin Criterion would still allow for income disparities to exist.? 2. Tarzan and Jane live alone in the jungle and have trained Cheetah both to patrol the perimeter of their clearing and to harvest tropical fruits. Cheetah can collect three kg. of fruit an hour and currently spends six hours patrolling, eight hours picking, and ten hours sleeping. What are the public and private goods in this example? If Tarzan and Jane are each willing to give up one hour of patrolling for two kg. of fruit, is the current allocation of Cheetah?s time pareto efficient? Should Cheetah patrol more or less? 3. For each of the following situations, indicate why the Coase theorem is applicable, or not. Explain your answers. a. A group of university students in a residence shares a communal kitchen. Some of those using the kitchen never clean up the messes they make when cooking. b. The pollution from a copper smelter drifts out over a surrounding residential area. c. Loud gasoline-powered leaf blowers are used by some homeowners for driving leaves and other debris into piles, but also result in driving leaves and dust into neightbours? yards. 4. Evaluate the following statements. a. Efficient provision of a public good requires that the good be produced by the government. b. The theory of externalities suggests that higher education should be subsidized by the government. 5. List and explain provincial government responsibilities according to the 1982 Constitution Act. According to this Act, what is the relationship between the federal and provincial governments?


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