. What do you think is the best sort of public policy to deal with the following pollution problems?

a) Acid rain

b) Nuclear radiation

c) Garbage disposal in wilderness parks

d) Trash collection in cities

e) Highway litter

HINTS Think of the 3 common control mechanisms Voluntarism, (Direct Command Controls (Limits or Prohibitions and Fines as Penalties, Taxes/Tradeable Emission Allowances, and discuss the pros and cons for each type of pollution control.

Chapter 17

1. The gasoline excise tax is an example of a benefit tax: people who use the highways pay for their upkeep through the tax. In what ways does the gasoline tax meet or fail to meet the criteria of horizontal and vertical equity? Can you think of a way of improving the horizontal or vertical equity of the gasoline tax, without abandoning the benefit principle?

2. Using supply and demand diagrams, (draw them) show i) the incidence, and ii) the change in quantity, when excise taxes are imposed on goods in the following sorts of markets:

a) Demand is elastic; supply is inelastic.

b) Demand is inelastic; supply is elastic.

c) Demand and supply are both elastic.

d) Demand and supply are both inelastic.

What generalizations can you make after studying these four diagrams.

Please help me with these questions