1. Why is the equilibrium point considered the just price for a good in a perfectly competitive market?

It is the price where the seller and buyer both agree on the worth of the good.

It is the price where the buyer is able to contribute less than the value of the good.

It is the price where the seller can make the most profit and the buyer is still willing to pay.

It is the price where neither the buyer nor the seller benefit from sale or purchase of the good.

2. 

1 Does moral hazard exist in insurance markets? If so, how can someone deal effectively with this issue?

2 Discuss an example of a market failure and whether the government has been effective in implementing policies to correct it.

3 Give an example of a positive and a negative externality. Discuss regulatory activities that may correct the negative externality.

4 Choose a product protected by intellectual property rights. Discuss the advantages and disadvantages of that product being protected.

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