Business Economic Theory

1. Explain competitive markets. Is the United States a competitive market, please give examples showing how it
is and how it is not depending upon the industry? Finally give your opinion on what countries are the most
“free-market” in the economic sense, compare and contrast that with a country that does not have a free-market.
What are the differences, how is productivity and income levels effected by the differences?

2. Define and discuss the spillover benefits v. free-rider problem. How are the two similar and dissimilar?  Give examples of both.
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