Choose one of the following examples and explain whether you think that the government should ban the product. Cigarettes. Beer, wine, or liquor. Fast food.

Identify at least one positive and negative externality from running a hamburger shop.  What is one example of how an externality could affect the price of your hamburger?

When are government intervention or government regulations beneficial to consumers?         when they impose regulations on businesses that limit profits         when they limit consumer choices by regulating goods sold by private firms         when they limit the number of businesses permitted to open and sell goods to consumers         when they impose safety regulations that determine how bicycle helmets are manufactured

Think of a time when the demand on an item was overwhelming high or the supply of an item was low, did the price go up because of this? Do you think it is right for organizations to demand more money and raise the price for the items in these?

Why the government needs to intervene in the markets?

Under which circumstances does the tax burden fall entirely on consumers?

Match each type of good with its associated market efficiency outcome

In a country the Government determines to increase the tax on gasoline by $0.20 per gallon. The price of gasoline after taxes though only goes up by $0.15. Does this mean the gas station is not collecting the correct amount of taxes?