1.4+Market+Failures

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HL Material Asymetric Markets 

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[|Interesting Guardian article on how taxes on tobacco leads to parallel markets] A video on Public goods. media type="file" key="Episode 33 - Public Goods (Version 2 - amplified audio).mp4" width="540" height="540" align="center"

Another Public good video

A selection of recent news clips linked to the concept of public goods [|Flood defence] [|Lighthouse protection] [|Speed cameras] [|Private prisons] Fireworks in Oban

Please post your articles on Market failure and government intervention here

TASK: <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Find a news article that shows market failure/government failure and explain what externalities are present. In class you'll need to make a short presentation to the class on this. All students will take note using the following template <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Here is one that I found:
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Title of article || <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Private cost || <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">External costs || <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Private benefit || <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">external benefits || <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">government intervention ||

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<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 18px;">Article on Demerit goods- sugar

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Often it is easy to simply say "it is difficult to measure externalities". However it is not impossible. Here is a [|link to a website] that measures external costs of air pollution in Hong Kong

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Revision video on youtube: <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">media type="youtube" key="jRN6V1rl6v8" height="315" width="420"

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<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Summative assessment essays

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">(a) What role do prices play in the allocation of resources in free market economies? (12) <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">(b) Evaluate the options available to governments to overcome the failure of markets arising from the production and consumption of demerit goods. Illustrate your answer with examples where possible.(13)

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May 2000 SL

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Carefully distinguish between merit goods and public goods, illustrating your answer with examples”

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">To what extent is it desirable that the government should provide merit goods and public goods”

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">May 06 HL P1

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Carefully distinguish between merit goods, demerit goods and public goods.[10 marks] (b) Evaluate the view that governments should always intervene in markets for such goods as cigarettes and alcohol.[15 marks]

May 2011 SLP! <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Explain the roles of market forces and government in allocating resources in a mixed economy. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Evaluate the extent to which market forces should be used to lessen the problem <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">of environmental pollution.

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Summative Data Response Question <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Summative test (test) <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Some Great links to articles you could use for your IAs on market Failure

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