1. How does consumer and producer surplus describe efficient markets in terms of allocation of goods and services?
2. International trade and trade agreements seem to be a big issue for the upcoming presidential election this November. Are we better off with free trade? Why or Why not?
3. Externalities are a form of market failure. What are positive and negative externalities? Explain by providing examples.
4. Define and give an example of a public good. Can the private market provide this good on its own? Explain.