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Assignment: State and Local Finance
1. Consider the following argument: The streets have been paid for by and belong to the people. Therefore, parking meters should be abolished. Analyze that position and prescription. Use a diagram to support your answer.
When writing your answer consider:
a. If there were no parking fees, how would the available parking spaces be allocated?b. Which allocation system is better?c. Who benefits from each type of allocation system?d. After abolishing parking meters, would people perceive that there is more or less of a "parking problem"?e. If parking fees or meters are used, should the cost of parking vary or be the same for everyone all the time?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
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Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..
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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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