FE431: PUBLIC FINANCE
Assignment 4: Due Wednesday 2/10/16
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This assignment should be well written and at least one page in length (typed,
double-spaced using 11 or 12 pt font and standard margins).
Only work that follows these instructions and represents a “Good Faith
Effort” to answer the questions posed will receive a check.
Stop by during my office hours (MWF period 4, Thurs period 9) if you have
questions, or set up another time to meet with me.
Read the following (preferably in this order):
1. Chapter 2 (Externalities) of your textbook.
2. “The Lorax” by Dr. Seuss. (Tip: It is more enjoyable if you read “The Lorax” out
loud). Five copies of the Lorax (illustrated version) are on reserve in the library.
You may be able to find the story or an online video version (25 minutes) by
searching “The Lorax” on Google.
3. “The Tale of Two Fisheries” by John Tierney (sent to you as an email attachment
and also available online from the NY Times by searching the title)
Consider how each reading relates to the efficiency of free markets. Consider the
following specific terms or concepts:
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Production
Externalities
Property rights
Common-property resources
Government regulation
A written essay for this assignment is optional. On the assignment due date, be prepared
to discuss “Externalities” and “Common Property Resources” in the context of the
“Lorax” story and the “Tale of Two Fisheries”.
The instructor will pose questions and randomly select students to answer. An inability to
answer (indicating that the assigned readings were not completed) will result in a grade of
zero for the assignment.