1.9. A government is deciding between command and control solutions versus tax and subsidy solutions to solve an externality problem. In each case, explain why you think one i better, u ing arguments from the chapter.

a. Suppose that whale are threatened with extinction becau e a large number of people like to eat whale meat. Governments are tom between banning all whaling except for certain religious ceremonies, and heavily taxing all whale meat. Assume there are only a few countries in the world that consume whale meat, and that they have fairly efficient governments.

b. Fires create external costs because they spread from one building to another. Should gov ernments encourage subsidies to sprinkler systems or should they just mandate that everyone have sprinklers?

c. Pets who procreate can create external costs due to problems with stray animals. Strays are extremely common on the streets of poor countries. Sterilization can solve the problem, but is a tax/subsidy or command and control a better method to encourage sterilization? Does the best solution depend on the sex of the animal?