1) What does the term regulatory capture mean? What are some problems resulting from it? 2) Contrast market failure with government failure in the internalizing of externalities. 3) Is it possible for the government to go too far in trying to internalize externalities? Consider external benefits and external costs. 4) Contrast the meanings of GDP and GNP and explain why both exceed the value of National Income. 5) The Bureau of Economic Analysis divides it statistics on GDP into four major categories. List the categories of expenditures and define each. 6) Define and contrast the following types of unemployment: frictional, seasonal, structural and cyclical - provides some examples of each. 7) Explain how the CPI is constructed. Why do you suppose most economists agree that it tends to overstate inflation by at least of a percent?