1. T/F - Economic regulation involves government intervention in certain industries to make sure that there are fair practices that are being exercised.

2. A _________ is a minimum price guaranteed to producers by the government.

a) price floor

b) price limit

c) cross price

3. T/F - Both quotas and tariffs protect the domestic market and it protects domestic producers.

4. T/F - Air pollution is an example of positive externality

5. The _________ theorum states that externality would voluntarily negotiate and efficient outcome without government involved when property rights are clearly defined.

6. A ________ externality is a value lost to third parties who are not represented by the market supply and demand.

7. T/F - Antitrust policy allows the justice department to intervene when monopolies can potentially take place or is already in place.