1.Public goods

a.Explain the public goods problem.

b.Explain the solution to the public goods problem.

c.Provide four examples of public goods that are instrumental in managing / solving the Coronavirus outbreak (one example of a public good is World Health Organization).

d.Comment on how effective you think these public goods are currently functioning. What could be done to improve their functioning.

2.Price controls - there is currently a lot of information in the media about states competing for personal protective equipment (PPE) in the marketplace, as well as spikes in prices for these goods.

a.Draw a S&D graph showing an analysis of rising PPE prices. Use data and be specific.

b.Show the potential impacts of a price control on PPE.

c.Do you think price controls should be imposed? What are the advantages and disadvantages?

d.Should price controls be imposed on other goods, such as food and other essentials. Why or why not?

3.Externalities

a.Explain the various externalities associated with social distancing (or violating social distancing rules).

b.Discuss how social distancing might create externalities for the economy as a whole (both positive and negative).

c.Draw a diagram showing an analysis of one of these externalities.