Lesson 1 - Market Failure - Externality (Tragakes pg 101-103)
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Learning Outcomes:
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Lesson 2 - Negative Production Externalities
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Learning outcomes:
Can you explain how the Industrial Pollution news video represents market failure? |
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Lesson 3 - Negative Consumption Externalities
We have learned that smoking is a Market Failure - Negative Consumption Externality - and there is an overallocation of resources to production. Do you agree with this video of taxes shifting the MPB closer to the MSB? Evaluate and share.
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Learning outcomes:
● Explain using diagrams and examples, the concept of negative consumption externalities and the welfare loss associated with the production of the good. ● Evaluate using diagrams the use of government policies and regulations to correct the externality. |
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