Answers+Chapter+1+YD

1. What are the trade-offs in this type of situation?
 * Jim and Carrey are deciding whehter to go to the movies or go play Dota-All-Stars at PC bang.

Answer: Jim and Carrey's trade-offs are either going to the theater or PC bang.

2. How can government intervention in the market be a good thing? Answer: giving property rights, solving market failure (externality, market power)