1.Explain the median voter model.Why might a minority say that democracy cannot represent them well?

2.Explain why the used car market is both an adverse selection and an asymmetric information problem.

3.What is the free rider problem? How does the government fix this problem?

4.What is a negative externality (also called spillover cost)?Give an example.

5.What is a positive externality (also called spillover benefit)?Give an example.