• Kazakhstan Institute of Management, Economics and Strategic Research

• ECON 2344

KIMEP Econ 3121: Public Economics 1 Department of Economics Instructor: Galiya Sagyndykova, MA Student Name 1:________________________ Student ID:_______________________ Student Name 2:________________________ Student ID:_______________________ Student Name 3:________________________ Student ID:_______________________ Student Name 4:________________________ Student ID:_______________________ Home Assignment #2 (max – 45 points) (Due date is June 10 at the beginning of the class) Solve the following problems. Use calculations, graphs and explanations in your answer. 1. (max – 12 points) For each of the following situations, is the Coase Theorem applicable? Why or why not? a. A group of college students in KIMEP dormitory share a communal kitchen. Some of the users of the kitchen never clean up the messes they make when cooking. (3 pts) b. In Kapchagai lake, high-speed motor boats irritate swimmers and canoers. (3 pts) c. The Kazakhstan Railway Corporation recently decided to start sending freight trains through the town of Balhash. Residents find he noise intolerable. (3 pts) d. Users of the Internet generally incur a zero incremental cost for transmitting information. As a consequence, congestion occurs, and users are