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Unformatted text preview: for/against the ban, but how the externality concept would work to justify regulation in this case.) 3. It is estimated that the Army Corps of Engineers will use almost $1 billion of worth of federal funds to reconstruct the New Orleans levees to withstand Category 5 hurricanes. Explain why flood control would be considered a public good. 4. Recently the FDA approved a vaccine for HPV manufactured by Merck Co. and will likely approved a similar vaccine made by GlaxoSmithKline this year. (HPV is a virus that causes most cases of cervical cancer in women.) Currently there is a huge debate in several states over requiring the vaccine for girls by age 12. a) What kind of market failure would support this regulation? Explain. b) What kind of government failures could result? Explain....
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- Fall '08