Question

Describe examples of market failure. Fill in the letter of the choice of the source of market failure for each one. Each one is represented by one answer, so answer the four with definite answers firs and then answer that one that depends.

a) Public Goods b) Negative Externailities c) Positive Externalities d) Imperfect Industry Structure e) Imperfect Information

1) I sell you a copy of Scott 85a for $1 million. The truoble is. it’s only a copy.

2) I open my car window while Missy Elliot’s latest hit is playing loudly and you and i are stuck in traffic next to each other.

3) I try to collect from you for street sign I have put up to help you find VINO, a great restaurent on Union Turnpike.

4) We discover that, due to reductions in federally funded student loans, fewer people are able to graduate college.

5) You go to Devil’s game at “The rock” and pay $3.25 for a bottlle of water and $4.50 for a hot dog.

Answer 1