1. Use a diagram to show what occurs if there are positive externalities and the market does not

take these into effect?

2. Use a diagram to show what occurs if there are negative externalities and the market does not

take these into effect?

3. What is the difference between a "public good" and a good provided in the "public sector?"

4. What happens if a public good is offered in the market?

5. Using a real life example, explain how loss aversion can lead to economic behavior that isn't

beneficial.

6. Give a real life example of a vertical and horizontal merger. Which will affect the HHI?

Why?

7. Health care insurance is complicated because of "adverse selection." Why is this?