1. Draw a hypothetical market for televisions, assuming that pollution is caused by the production of TV sets. What shift will occur in the graph if the government imposes an emissions fee on the polluting firms? What effect will this have on the price paid by consumers? Is it appropriate that consumers of televisions pay a higher price?
2.. Critically evaluate the argument for decriminalizing marijuana. Will your analysis be different if you uncover evidence that marijuana is a “gateway drug”? What if it is shown to cause birth defects or miscarriages? What if it is shown to cause increased automobile accidents?
