1. ”We should auction off our national parks and forests to the highest private sector bidders and trust that competition and the profit motive will lead them to allocate these resources to the highest valued uses.” Agree or disagree with this statement and explain your answer carefully.
2. What is the economic justification for zoning laws, which restrict the private property owner’s right to do what he or she wants with his or her property?
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1. Because the national park is non-rivalry: a use by a consumption of the good by any individuals do not prevent others from consuming, it is a good candidate to be a public good. It can be even considered as non-excludable: it is impossible to exclude any individuals from consuming the good. It is technically possible to make it excludable but it will be very costly...
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