1- Explain why Mexico and the United States enjoy a flourishing trade even though the latter is more productive in all sectors of its economy than Mexico.
2- Competitive markets are said to be efficient because they maximize total consumer and producer surplus. Explain how monopoly markets differ in this regard.
3- The baseball season has begun and it is rumored that the city of San Francisco is discussing placing a $2 tax on each ticket sold at AT&T Park. Estimate the incidence of the tax and explain the economic forces affecting the outcome.
4-Recount and incident in your past which in retrospect required that you consider the opportunity cost of an action taken. State the circumstances the decision made and whether the outcome met with your satisfaction.
5-Under what circumstances can a producer employ discriminatory pricing and how does it benefit consumers as well as increase profits of the seller?
6-Market failure exists in the form of uncompetitive markets and those which negatively or positively affect people who are not participants as buyers or sellers. Provide an example of such a market and indicate how government policy might correct the failure.