7.Listen to the following podcast:

https://www.npr.org/sections/money/2015/07/22/425392169/episode-640-the-bottom-of-thewell?utm_source=EX&utm_medium=Podcast&utm_campaign=MRUEmail&utm_content=Epis ode%20640%3A%20The%20Bottom%20Of%20The%20Well&__s=2oc8halfeuhyhq4vi3c2

Answer the following questions:

1)In this scenario of Central Valley in CA, how would you categorize the good that households and farmers are all competing for (water):

Is it rival/nonrival?

Is it excludable/nonexcludable - explain your thinking using specifics from the podcast.

2)Which of these important requirements for markets to function is missing in the Central Valley, CA water problem?

a) Consumers

b)Competition for the resource

c)Property rights

d) Government ownership

3)Consider the approaches to address the tragedy of the commons mentioned in both the podcast and the MRU video. As presented in the podcast a group of farmers in the area of Stockton California were afraid that the government would come in and limit water use and so took action of their own. Which type of approach is represented by the potential action of the government to come in and limit water use?

a)Government regulation

b)Norms

c)Private property

4)Which type of approach is represented by the actions that the 500 farmers of Stockton took in organizing themselves to reduce water use themselves?a) Government regulation

b)Norms

c)Private property

5)Suppose the country of Cameroon is hunting elephants to the point of extinction. The government then decides to strictly limit the number of hunters and the number of rounds of ammunition each hunter can take into the hunt. How do you think the hunters might respond?

a)Decrease the quality of their ammunition.

b)Increase the quality of their weapons.

c)Decrease the number of times they hunt.

1.Based on the video: https://www.youtube.com/watch?v=zcPRmh5AIrI&t=37s Describe the three solutions they gave for the negative externality and list the problems of each.