Property Rights

Question 1

Unliversality

Answer 1

All resources are privately owned and all entitlements are completely specified

Question 2

Exclusivity

Answer 2

All benefits are accrued as a result of if owning and using the resource accrue to the owner and only the owner

Question 3

Transferability

Answer 3

All rights can be transferred in voluntary trades

Question 4

Enforceability

Answer 4

Property rights should be secure involuntary seizure from others

Question 5

Exclusivity violated

Answer 5

Cost or benefit not being internalized

Question 6

Market vs society optimum

Answer 6

Price in market is to low
Too much quantity is produced
Too much of externality is produced

Question 7

Government intervention

Answer 7

Tax
Coarse Theron
Command and control
Transferable rights

Question 8

Command and control

Answer 8

Engineering approach

Can set at zero, low, or high levels of control.

Question 9

Coarse theorem

Answer 9

Economic incentive based approach
Give rights to one or the other
Does not matter who gets rights as long as rights are well defined and transaction costs are low

Question 10

Wealth impact

Answer 10

Difference in who pays

Question 11

Low control cost firms will

Answer 11

Control and sell permits

Question 12

High control cost will

Answer 12

Pollute but buy permits

Question 13

Public goods are

Answer 13

Nonrival and
Non excludable
One persons consumption does not diminish the amount available to others

Question 14

Examples of public goods are

Answer 14

Warning systems 
Landscapes
Genetic diversity 
Defense 
Ecosystem services 
Efficiency is not achieved due to free rider and absence of excludability

Question 15

The horizontal summation of individual consumer demand curve to get

Answer 15

Market demand curve

Question 16

Public goods summation is

Answer 16

Vertical of consumer demand curves because non rival in consumption
Market may not be at society’s efficient point