Show all your work for the problems requiring calculations.

1.A.Define government failure.

B.List the four groups of decision makers that interact in the political marketplace.

C.Define public choice.

2.Explain rival and nonrival.

3.Explain excludable and nonexcludable.

4.Using the concepts of rival and excludability define and provide an example of:

a.Private goods

b.Public goods

c.Common resources

d.Natural monopolies

5.Explain what a free-rider is.Explain why it makes the private provision of public goods inefficient.Will there be an overproduction or underproduction of public goods if we rely on the private sector to provide them?

6.Explain the concept of the principle of minimum differentiation.

7.Explain the concept of rational ignorance.Will rational ignorance result in over or under-provision of a public good?Why?

8.Explain the three problems that contribute to the Healthcare Market Failure (as per the book) (Please don't just list - give an explanation).

9.According to the book, of the countries shown, who spends the most on health care per person?

10.How does Obamacare (the Affordable Care Act) help low-income families acquire health insurance?