1. How can the government intervene to force consumers to internalize external costs associated with:
a. negative externalities?
b. positive externalities?
2. What are the advantages of a flat tax system?
3. Discuss the economic implication of the legalization of marijuana (recreational and medical use). Who are the winners and losers?
4. Many have claimed that outsourcing by American companies is costing American jobs. However, companies claim that they cannot compete if they do not cut cost and one effective way of cutting cost is to have some of your goods produced outside the U.S. Do you agree? Discuss some of the advantages and disadvantages of outsourcing.