1.Provide and explain two examples each of goods or services that provide positive externalities and negative externalities.

2.Each time she goes to the supermarket, Mrs Williams purchases six soft drinks for her household. Invariably, the sodas are consumed by her two children by the end of the first day. One week, she decides to allot three soft drinks to each child. For the first time, there are soft drinks still unconsumed on even the second day. Explain this outcome in terms of a market failure?

3.Provide an example of an excludable, nonrival good. Provide an example of non-excludable, rival good.

4.Why is canned fruit branded and fresh fruit usually not?

5.Some publishers have been known to buy copies of their own books on Amazon.com. This seems like a waste of their money since the publisher would have sold the same books to Amazon at a discounted wholesale price. Why would a publisher do that? What is the market failure being exploited?