1. How does scarcity of resources affect firm's decision making? Justify your answer by providing real life situation. (5 points)
2. How do you see the partnership between government and firms in producing public goods (i.e. Public-Private Partnership: Bulacan International Airport Project, Cavite-Laguna Expressway (CALAX), Mindanao I Geothermal Plant and etc.)? Discuss the implications of this economic decision both on the part of the government and firms. Justify your answer. (10 points)