1-Suppose that government environmental agencies decide exactly how much of each kind of industrial pollutant they will allow within a given airshed, and sell the rights to discharge these quantities of pollutants to the highest bidder. Which firms would offer the highest bids? How could citizens interested in cleaner air than the environmental agencies had ordered use this system to obtain what they want?
2-A frequent argument in support of government-produced goods is that they are vital to social welfare, and therefore their provision cannot safely be left to the whims of the marketplace. Does this explain why parks and libraries are usually municipal services, whereas food, shelter and medical care are usually secured through the market? Can you suggest a better explanation to account for these cases?
