Nov 21 2012
Over the years I have written many posts on this blog about market failure. The purpose of this activity is for students to re-visit some of these posts, reflect on different types of market failure, and then complete a short survey in which they demonstrate their understanding of the topic.
With the results from the survey, we will have assembled a comprehensive spreadsheet of all the different types of market failure we study, including definitions, examples, graphical representations and possible government responses. This document can then be used for review by Economics students studying for a market failure test.
First, you must get into five groups and each group must read a couple of blog posts about their assigned market failure type.
Group 1: Public Goods:
Group 2: Positive consumption externalities:
Group 3: Positive production externalities:
Group 4: Common Access Resources and the Tragedy of the Commons
Once your group has read and discussed the blog posts you were assigned, work together to complete the following form. Only click submit once all questions have been answered!
Once each group has submitted the form, the results can be viewed publicly here:
About the author: Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author