1. According to the Friedman Real World Micro reading (posted online under "Course Readings"), how would a single-payer health insurance system reduce health care costs, relative to other alternative health insurance policies? Does the Affordable Care Act offer the same advantages in terms of reduced costs? Why or why not? Limit your answer to a paragraph.
2 Give three examples of negative externalities and explain, for each example, explain how the government can reduce each type of negative externality. Limit your entire response to 1 paragraph.