Q1. What is a natural monopoly, and how does it help consumers?
Q2. Explain the idea of the prisoners' dilemma.
Q3. What is a Nash equilibrium?
Q4. Explain why economists also call negative externalities "spillover" effects.
Q5. DDT is an effective, potent pesticide and is now banned in Canada. Should DDT be banned everywhere or is it just like the goal of zero pollution? What position on DDT would you support? What additional information might you need before deciding? The answer depends on,What values you place on protecting the environment (and saving lives in the future) versus saving lives now( at the expense of environment). "Never make a choice, including environmentally friendly choices, without considering the opportunity cost".
Q6. Explain how the free-rider problem of public goods causes markets to fail.
Q7. Two physically identical houses can have very different values depending on their neighbourhoods. How do positive (or negative) externalities help explain this difference in property values?