ECON 10010/20010 UNIVERSITY OF NOTRE DAME Principles of Microeconomics \"ET 5' II'E IF]! D 111']! Assignment Overview: This assignment gives a historical example of a problem created in assigning property rights over a scarce resource in the presence of negative extemalities. This assignment also reiterates the main points of the Coase Theorem and investigates their relationship to the historical example. Relevant Podcasts: \"The Less Deadly Catch" - Planet Money \"Robert Frank on Coase" Econtalk from 0:00 to 19:20 Assumptions and Agreements: 1. Your submission is due on Sakai by Thursday, Dec. 21"1 at 11:55 pm 2. Your submission will graded according to the following rubric: 0 Points 5 Points 8 Points 10 Points You did not Your response does not Your reSponse fails to Your response shows a submit an show a signicant display a nuanced nuanced understanding assignment. understanding of understanding of concepts of the concepts concepts discussed in the discussed in the podcast. discussed in the podcast. podcast. Listen to the assigned podcast from NPR and excerpt of a podcast from Econtalk [0:00 to the 19:20 markl] which are available through NPR'S Planet Money and Econtalkorg and answer the following questions. Your responses do not need to form a cohesive essay; instead focus on concisely responding to each prompt. 1. Describe the nature of the negative externality problem in halibut shing that led the government to drastically ration the number of days when shing for halibut was legal. 2. The Coase Theorem states that, "the efficient outcome to an externality problem will be reached privately if transaction costs are low, regardless of the initial assignment 1 You are welcome to listen to the entire podcast. The remainder goes in depth on the pros and cons of Coasian [i.e., related to the Coase Theorem] analysis. ECON 10010/20010 UNIVERSITY OF NOTRE DAME Principles of Microeconomics of property rights." During the time period in which halibut fishing was rationed to only a few days a year, the efficient outcome was clearly not being reached. In the context of the Coase Theorem, explain in 3-5 sentences why the efficient outcome was not reached during this time period. 3. In 3-5 sentences, describe what economists mean by an efficient outcome. What are two pros and cons of measuring / ranking outcomes based on this measure. 4. List 3 things that were either unclear about the podcast, or general questions related to the material that you would like to know more about