Answer all parts of the following questions:
1. What is the difference between Public Goods and Private Goods? What is the
main problem with Public Goods? What are the policy tools to deal with this
problem? Explain, reason your answer and present examples to support your
claims (67 points).
2. Taxes and subsidies are two sides of the same coin. Explain, and present
examples to support your answer (33 points).
1. Papers should not exceed the length of Two pages (not including
Bibliography and Appendixes). Up to a page and a half for question #1, and
half a page for question #2.
2. Papers will be presented in Times New Roman font size 12, aligned to both
sides, 1.5 lines spacing, and 3 cm of each page margins.
3. Papers should use formal rules for academic writing and referencing (APA
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