GROUP A:

1. Duval county recently passed 6 cents per gallon increase in the Gasoline tax. Data tells us that the short run (1 year or less) prices elasticity of demand for gasoline is approximately -.26. Given this information, discuss the likely impacts of this new higher tax on the market for gasoline in Duval County specifically in terms of economic efficiency (market efficiency) and equity. Be specific in your explanation.

1. A current "hot topic" in our world is climate change. How is this a problem in terms of intergenerational equity? How do the issues that are inherent in evaluating/balancing intergenerational equity help explain why there is such a huge debate over what if anything should be done about this problem? Be specific as to what these issues are in terms of economics.

GROUP B:

1. Under what circumstances is it reasonable to grant any degree of monopoly power to a firm? Offer specific examples of such economic situations by discussing positive elements of the existence of monopolies.

1. Explain how the problem of ownership is a significant factor in explaining the difficulty in maintaining the St. John's River as a clean river. Could more specific property rights with respect to the river help resolve this problem? Explain how.

1. A town is in financial trouble and is considering imposing user fees for certain services. The current list consists of fire protection, police, schools, parks, and libraries. You are hired to advise them on this from an economist's perspective. For which of these would it be most (least) reasonable to use such an approach to funding? Explain your choices by discussing the effectiveness of a fee on each relative to the concept of a "Public Good" as defined in economics and whether such user fees would provide total funds consistent with the overall social benefit of each?