1. Compare perfect competition and monopolistic competition. In what ways are they similar? In what ways are they different?
2. Explain why imperfect information can lead to market failure. Explain how the market can solve the problem of imperfect information. Under what circumstances may it be more efficient for the government to produce information instead of relying on the market?
3. Explain the adverse selection problem that is faced by health insurance companies when offering individual health insurance policies. What method do health insurance companies employ to combat the problem?
4. Define the utility possibilities frontier. Explain what it means when society is inside the utility possibilities frontier. Explain what it means when society is on the utility possibilities frontier. Explain what determines the point that society arrives at on the utility possibilities frontier.
5. Discuss the factors that determine the ultimate burden of the corporate tax.
6. What is the basis of the "Cheap Foreign Labor" argument and what are its weaknesses?
7. Define the following four references and name a country that you argue would fall into each category;

(a) First World (b) Second World (c) Third World (d) Fourth World