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Economics, Third Edition
John B. Taylor, Stanford University
Economics W.I.R.E.D.
Chapter 15: Public Goods, Externalities, and Government Behavior

These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.

Key Concepts: Public Goods, Cost-Benefit Analysis, Externalities: From the Environment to Education, Remedies for Externalities, Models of Government Behavior,

Environmental Protection Agency—Global Warming

Review the general background information outlined in the four sequential topic areas ("climate," "emissions," "impacts," and "actions") on global warming.

  • Explain why no nation is interested in taking the first and unilateral step of cleaning up the air (Hint: consider public goods).
  • Why are governments pressured to solve the global warming problem?
  • Visit the Econergy International Corporation (EIC). Click on "Our Services." Explain how a market-based solution to controlling greenhouse gas emissions is possible.





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