ECS2606

University of South Africa (Unisa)

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ECS2606 Assignment 1 (Complete Answers) Semester 1 - Due: 14 March 2024
Exam (elaborations) • 15 pages • 2024

ECS2606 Assignment 1 (Complete Answers) Semester 1 - Due 14 March 2024

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ECS2606 Exam 16 MAY 2024
Exam (elaborations) • 6 pages • 2024

Sec�on A (50 marks) Answer ALL the Ques�ons Ques�on 1 1.1 You want to clean up a lake where ten households live. Explain the problem of free riding given that you want to charge each household the same amount for cleaning the lake. (10) 1.2 Explain what you understand by internalizing and externality. (5) 1.3 Explain the equimarginal principle and why it leads to minimum aggregate abatement costs (no graph). (5) 1.4 What are externali�es? Describe posi�ve and nega�ve exter...