1. Draw a supply-and-demand diagram to explain the effect of a negative externality that occurs as a result of a firm's production process.
2. The federal government tests the safety of car models and provides the test results free of charge to the public. Do you think this information qualifies as a public good? Why or Why not?
3. Define and give an example of a public good. Can the private market provide this good on its own? Explain.