1. What is market failure? Explain in your own words. (3 marks). 2. Why do markets fail. List two reasons and explain them in your own words. (4 marks). 3. Explain what an external effect (also known as an externality) is in your own words. Do not copy this from the slides or textbook. (3 marks). 4. List four examples of externalities that are not in the slides. (4 marks) 5. Explain what a social dilemma is and list one example of a current social dilemma.(3 marks).