7,8 and 9 assignment

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1. What is the difference between private and social costs?

 2. How can the government intervene to force consumers to internalize external costs associated with: a. negative externalities? b. positive externalities?

3.  Differentiate between a public good and common resources.

4. Would a tax on prescriptions drugs be more likely to be progressive or regressive? Why?

5. What finances the majority of federal spending?

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