What do you believe is the most important environmental problem facing the U.S. and what are the economic subjects of this problem? Provide specific instances of how the problem is tied to market activity, referencing the circular flow diagram as well as the materials balance model. What would be the insinuations on economic well-being if we try to redress the ecological harm?

Describe a real-world government policy that creates a market surplus. Be sure to carefully explain the relevant market. In the example you have described what is the government's motivation for intervening in the market in this way? Describe the efficiency implications of such a policy. Be specific