If the public good is a public park in a small village, how may a government go about trying to determine that amount? Describe the possible shortcomings of the methods that the government may adopt.
Microeconomics 2 Essay Word limit: 1,500 Explain, using a proper model, why economic theory predicts that the price of an exhaustible resource (such as oil) rises at the rate of interest. (20 marks) Explain what may prevent this from occurring in the real world. (15 marks) If firms producing the exhaustible resource decide to collude, […]