Assignment

Each answer should consist of one or two paragraphs that contain analysis (not opinion).

1. What is likely to happen to the political campaign contributions made by Tier 1 networks and other major internet suppliers if the FCC is successful in getting the power to regulate Internet traffic agreements?

2. Why are all cartels inherently unstable?

3. Are coupons offered for groceries an example of price discrimination? Explain.

4. Government actions to require mandatory occupational licensing requirements impacts the prices charged for these services. What is the economic reasoning behind the assertion that occupational licensing requirements raise prices and what do consumers get for the higher prices? What is the economic reasoning regarding progress over time in an occupation that has licensing? (Note that you cannot charge more for your services just because your costs increase.)

5 In Britain, everyone has the right to health care provided by the National Health Service, paid for out of tax revenues. Nevertheless, two-thirds of British citizens earning more than $80,000 per year currently purchase private health insurance. Why would people opt to pay twice for healthcare services?