1. Have you ever noticed that the grounds of city-owned parks are often more polluted and trashier than those of country clubs? Is it simply because people who use parks are less concerned with pollution than those who golf? Might the property rights assignments have something to do with it? Who owns the city park? Who owns the country club? Are there any penalties for not complying with cleanliness at parks versus country clubs? Are the incentives of people different at the two places? What difference does ownership make in answering this question?
2. “Specialization and free trade within our country is fine. But free international trade is another beast altogether. Cheap foreign imports do not increase our own production possibilities frontier and create economic growth. Instead, cheap imports create a loss of jobs in our country.” Carefully evaluate this statement. Ask yourself whether consumer access to the lowest priced goods provides social benefits (being able to purchase more of other non-traded goods)? Does restricting free trade between countries or U.S. States raise or lower wealth in the U.S.?
