What is an externality? Provide examples. How does an externality affect the market outcome? Is it possible for a government s solution to a market failure to worsen the failure? Explain your answer.

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What is an externality? Provide examples. How does an externality affect the market outcome? Is it possible for a government s solution to a market failure to worsen the failure? Explain your answer.

What are the differences among horizontal, vertical, and conglomerate mergers? What does the U.S. government hope to achieve through its antitrust policy? How do the resolutions of the IBM, AT&T, and Microsoft antitrust cases differ? How does international competition affect domestic antirust policy?

What is the cost benefit approach a typical economist takes to analyze regulations? What are the goals of taxation? How are economic policies affected by politics? How do politics make a positive or a negative contribution to economic policy? How does antitrust policy and regulation affect economic welfare?

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