Government involvement in the market economy

What is the rationale for government involvement in the market economy?

Market externalties

Explain why situations involving benefit externalties tend to result in an uderallocation of society's scare resources and why situation involving cost externalties tend to result in an overallocation of society's scare resources.

Coase Theorem and the role of government

Discuss the Coase Theorem. What this theory imply about the role of government in dealing with market externalities?

The media and others suggest that the current account deficit run by the U.S. is a problem for the economy.

The media and others suggest that the current account deficit run by the U.S. is a problem for the economy. What do you think? What action(s) would you advise federal government officials to take on this issue?

Nominal GDP

Read the following article and provide a 150 word discussion on the comparison of real vs. nominal GDP. As always, try to provide a real-world example you might find by researching the internet. http://www.dallasfed.org/data/basics/nominal.html