1. In general, what are positive externalities? Why do they lead to potential inefficiencies in a competitive market environment?

2. From your own life, what is an example of a positive externality situation that you have faced?

3. In general, what are negative externalities? Why do they lead to potential inefficiencies in a competitive market environment?

4. From your own life, what is an example of a negative externality situation that you have faced?

5. From across the "Do Taxes on Soda Really Lower Sugar Intake?","Italy to tax plastic and sugar, angering producers", "Even With Congestion Pricing, MTA Consultant Predicts Gridlock at Dozens of Key Intersections", "Can We Nudge, Instead of Regulate, Our Way Out of Obesity?", "The Clean Water Act changed Wisconsin's waters. At 50, its supporters see success but progress still to go", "Wind Turbines Leave Behind Hard-To-Manage Waste","Data Driving New Approaches to Transportation" articles in the packet, what are examples of negative externality issues, and "Bike-sharing: Time to crack down on free-riding? (Note: There are several...just listing 1-2 is insufficient!)

6. What do you think the appropriate government response in this situation in this "The Clean Water Act changed Wisconsin's waters. At 50, its supporters see success but progress still to go" article is? Explain....

7. Explain the Coffee Break political cartoon as if you were explaining it to a younger sibling who hadn't taken any Economics courses yet.

COFFEE BREAK Cartoon Details Image #: 226732 Published: 06/24/2019 Title: Coffee Break Palette: Color Artist Osmani Simanca Attribution: Coffee Break by Osmani Simanca, Brazil Restrictions: None CAPSULE COFFE CAPSULE CAPSULE