1. What is a free market system? What are the basic assumptions that a free market system is based on? What are the erroneous assumptions that the free market is based on? Why are they thought to be erroneous?

What is a free market system? What are the basic assumptions that a free market system is based on? What are the erroneous assumptions that the free market is based on? Why are they thought to be erroneous?

Your response should be at least 300 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Text book reference:

Weimer, D. L., & Vining, A. R. (2011). Policy analysis: Concepts and practice (5th ed.). New York, NY: Longman.

2. Explain how the Pareto-efficient allocation of goods also maximizes social surplus. Please provide at least one example to justify your response.

Your response should be at least 500 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Text book reference:

Weimer, D. L., & Vining, A. R. (2011). Policy analysis: Concepts and practice (5th ed.). New York, NY: Longman.