1. What are externalities and how do they affect the markets? 2. What are the private goods and public goods or services? 3. What are the challenges of providing nonexcludable goods? 4. Public goods-are parks public goods such as central park in NYC? Case on Fracking: In 2003, energy companies began using a process known as hydraulic fracturing or fracking, to extract underground reserves of natural gas in 34 states across the US. Fracking involves injecting water, chemicals, and sand into rock formations more than a mile deep. The processes release the natural gas that is trapped in those rocks. This approach also allows the gas to escape the well. See the film under attachment on fracking. Questions- 1. What negative externalities might fracking generate? 2. What positive externalities might fracking generate?