address the following questions in an essay or short answer form: 1. Explain the difference between a positive and normative statement. Give an example of each type of statement. 2. How can an economy achieve points that are outside the production possibilities curve? 3. Review the Spillover Principle. Give an example of a good with a positive externality and a good with a negative externality (not mentioned in the online text). What are the best ways to allocate goods with externalities? 4. Do some research on your own on public goods. What are the two main characteristics of this type of good? What is the biggest “problem” with allocating public goods? Do you think the government should have a role in allocating public goods, or should goods be privatized? Be sure to support your answer with references.
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