1. What goods and services would you include in an

estimate of the basic necessities for a family of four?

2.If a family of three earned $20,000, would they

be able to make ends meet given the official poverty

threshold?

3.How do you think the problem of moral hazard

might have affected the safety of sports such as football

and boxing when safety regulations started requiring

that players wear more padding?

4.A website offers a place for people to buy and

sell emeralds, but information about emeralds can be

quite imperfect. The website then enacts a rule that all

sellers in the market must pay for two independent

examinations of their emerald, which are available to the

customer for inspection.

5.How would you expect this improved

information to affect demand for emeralds on

this website?

6.How would you expect this improved

information to affect the quantity of high-quality

emeralds sold on the website?