This exercise encourages students to explore the role of government in the market system. By formulating questions and interpreting answers students will be given the chance to determine the main points of discussion in Section 2 of the chapter.

Divide the class into groups of three or four students and assign each group a part of section 2 on the role of government in the market system from which to create a question that may be answered in one sentence. Groups have ten minutes to create their questions and then each group should pick another group to answer its question. (In large classes, the instructor should arbitrarily pair groups for questions and answers.)

While group questions and answers will vary, be sure that the concepts of efficiency, externalities, and public vs. private goods are explored.