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Econ 370
HW#6 (will not be graded)
I.
Answer all
of the three Questions for each
of the three Products.
Products
1.
NJ Turnpike
2.
Dulles airport
3.
Questions
1.
Discuss a
possible method of (strongly) privatizing
the product. (2-3 sentences)
2.
What efficient
improvements would probably come from privatization? Can you think of any possible inefficiencies that would result from privatization?
(3-5 sentences)
3.
Can you think
of any manner of making the privatization scheme more politically
feasible? (Hint: How could you "buy
off" interested parties who will otherwise resist privatization?)
II.
In class we discussed several arguments against
privatization the defense services industry.
Pick one of these arguments (or offer an original one of your
own). In 1 page, do the following:
1.
Explain the
argument in your own words.
2.
Explain how
you think an advocate of defense service privatization would respond.
3.
Which sides do
you think wins this particular argument?
Why?