Micro essay questions:

Would a permit scheme be better than a tax scheme for the control of global warming? Under what circumstances would a hybrid scheme improve on both?

Suppose that in an industry there are currently at least two firms that sell identical products, and that they are earning collusive profits. What will be the likely effects on the ability to maintain collusion of: (a) an increase in the number of firms; (b) a rise in the real interest rate; (c) an anticipated one-period increase in industry demand; and (d) the introduction of a leniency programme? (Consider each factor separately.)

Consider a model of competitive provision of insurance, where each of the risk-neutral companies can offer insurance at a fixed price p per unit, and then consumers can choose their level of cover subject to not over-insuring. (Thus, if a consumer would require a reimbursement of q in the event of a loss, then she must pay a premium of pq to her chosen insurer.) What market outcomes are possible when the consumers are privately informed of their own probability of incurring a loss?

Pat argues, “Sure, I don't like risk. But if I always choose the option with the higher expected value, over the long run the wins and losses will more or less cancel out, except that I will end up getting a higher payoff on average. So it is irrational to be averse to risk.” Evaluate Pat's argument.
	[hint: think of this problem in terms of mean-variance utility]

Politics essay questions:

Has economic development altered the effect of religion on politics?

Which public policies could be more effective to reduce inter-ethnic conflict?

Why have some extreme-right parties been more successful than others in recent years?