1. Why might the existing firms in a cartelized industry prefer to be regulated by the government?

2. What is the problem with common property resources?

3. "Public policy is necessary to protect the average citizen from the power of vested interest groups. In the absence of government intervention, regulated industries, such as airlines, railroads, and trucking, would charge excessive prices. Products would be unsafe, and the rich would oppress the poor. Government curbs the power of special interest groups." Comment saying why you agree or disagree with the accuracy of that statement.

4. In the "absence of unions, employers would be able to pay workers whatever they wanted." True or false? Why?