Q1) Students at a nearby college often complain about assignments requiring group work. The statement "I could have done a better job by myself" is often heard.

a. Explain why group work, in which everyone in the group receives the same grade, is a public good.

b. Is the quality complaint heard by students consistent with what theory might suggest?

c. Explain how the incentive to free-ride manifests itself in group work.

Q2) What factors might limit the effectiveness of fiscal policy?