1) Demonstrate the welfare loss of a tax when the supply is highly elastic and the demand is highly inelastic. Explain and give an example.
2) Explain how government intervention is a type of implicit taxation. What are your feelings toward the subject?
3) Explain price ceilings, price floors, and rent-seeking. Use examples.
4) "Collecting more taxes than is absolutely necessary is legalized robbery." Do you agree with this statement? Explain your response.
5) What is an externality? Show how it affects the market outcome. (Use an example)
6) Explain how informational and moral hazard problems can lead to market failure. Give an example.
7) How do taxation and government regulations affect the U.S. microeconomy?