1.)What are the appropriate government responses to health externalities such as smoking, drinking, and obesity?

2.)Why does the government face difficulties in providing the optimal level of public goods?

3.)In 1900, 35% of workers in the United States were employed on farms. By the year 2012, this share had fallen to 1.5%, due both to increased farm efficiency and imports of agricultural products. Yet this small sector receives $11 billion in direct support from the federal government each year. If farm subsidies are so expensive and their distribution is so at odds with their stated goals, how does this program survive?

4.) What is the market failure in higher education? How should it be addressed by the government?

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