Answer the following three questions in a longer paragraph and include any diagrams that are requested. Each question is worth 15 points (45 points total).
1. Assume you have three individuals who each has a unique demand curve for a good. Show how this good may not be provided privately but that it may be provided as a public good.
2. Explain why minimum wage workers could suffer reduced employment if the EI premium were to be increased.
3. Explain how education can act as a signal to employers by differentiating between high and low productivity workers. Explain the importance of a costly versus an inexpensive signal.
Based on “Public Finance in Canada, 5th Edition Rosen H et al
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