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Assignment:
This question refers to the discussion of the construction of the Tellico Dam on the Little Tennessee River by the late 1970s. As you recall from Prof. Zygmunt Plater's TEDtalk, construction of this hydroelectric dam was quite controversial and marks a turning point in American attitudes toward dam construction. Now, answer the following related questions giving brief explanations.
A. While Zygmunt Plater and his colleagues were filing the lawsuit against the construction of the Tellico Dam, which law did they invoke? By doing so, what type of environmental value/cost were they referring to?
B. As Prof. Plater states it, the Tellico Dam controversy all boils down to the lack of proper cost analysis. Now, imagine yourself as a young economist in Plater's team. How could you help them in conducting a proper cost analysis for the lawsuit? What type(s) of economic approach(es) would you use and what would be the related pros and cons?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
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Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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