What are public goods? Give examples. Why do many economists think that they pose problems for society?

Define asymmetric information. Why would some economists justify government intervention in the presence of asymmetric information? Why would some economists not justify it?

New York Magazine says: Grin and Share It: "The music industry’s lame lawsuits against MP3-loving kids aren’t going to put the file-sharing genie back into the bottle. As Martha might say, it’s a good thing."

Which of the following is true about the market and public sector?
a. Competition is not present in the public sector.
b. There is more free choice for individual consumers in the market sector.
c. The public sector utilizes the price mechanism more than the market sector.
d. The link between the consumption of a good and the payment for a good is clearer in the public sector.

Compared to the ideal, when producing a good generates external costs, market allocation will likely result in an output that is too
a. large and a price that is too high.
b. large and a price that is too low.
c. small and a price that is too high.
d. small and a price that is too low.

A public good is a good
a. produced by the government.
b. that, if made available for consumption by one person, is also available for the benefit of others.
c. produced by private firms but financed by the government.
d. consumed by private individuals and financed by public contributions.