20 Jun WHAT ARE THE TWO CHARACTERISTICS OF PUBLIC GOODS?
1. What are the two characteristics of public goods? Please provide examples and explain the significance of each.
2. Explain the concept of consumer surplus and producer surplus. Please provide an example of each.
3. Explain the two causes of market failures. Please provide an example and explain each.
4. Explain negative externalities and positive externalities. Please provide an example of a negative externality and a positive externality. How might government correct the externalities?
5. What is the usefulness of the total revenue test for price elasticity of demand?
6. What are the factors that affect price elasticity of demand and price elasticity of supply? What are some applications of each?
7. How can the government’s power to coerce (influence economic behavior) be economically beneficial?
8. What are the functions and responsibilities of the Federal Reserve?
9. Why is Federal Reserve independence important?
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