Glendale Community College Micro Economics Discussion

For this assignment, you have to watch three youtube videos, and based on that you have to answer the question. ( please make sure it’s your own words). Here are all the questions that need to be answered and link for the youtube videos.

1. What is the Cap and Trade system for and how does it work?
2. How is Cap and Trade better than command and control at reducing emissions? Explain how is Cap and Trade better than taxing to reduce emissions? In order to do so, draw or explain how the welfare loss (or the MSC) is reduced with both options.

Watch the video on Icelandic fishing and answer the following questions:

1. Explain the public good identified in the video (what is a fishery)? Explain the TWO characteristics of this good that make it “public”.
2. Why are public goods not produced by the private market? Explain carefully.
3. Explain the externality that results from over-fishing? Who is impacted? How are they impacted from over-fishing?
4. How did they solve this problem? Use the information from the video to answer this question.
5. Why is this considered better than taxing/subsidizing (which is the solution discussed in your text)?