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What are positive and negative externalities

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1. How does consumer and producer surplus describe efficient markets in terms of allocation of goods and services?

2. International trade and trade agreements seem to be a big issue for the upcoming presidential election this November. Are we better off with free trade? Why or Why not?

3. Externalities are a form of market failure. What are positive and negative externalities? Explain by providing examples.

4. Define and give an example of a public good. Can the private market provide this good on its own? Explain.

Reference no: EM131168241

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