Economics – 4/28/14

I.  Bellwork Q&A

 

1. What is happening in the picture?
2. Who is impacted?
3. How are they impacted?
4. Why do you believe this is being allowed?

II.  Objective:

• Identify common circumstances related to market failures and the impact externalities have on society.
• Evaluate various explanations for actions or events and determine which explanation best accords with textual evidence

III.  Retakes tomorrow @ 2:30 in G204 (Retakes bring 3 paragraphs for section summaries)

IV.  Video & Discussion

• Externalities

• Externalities: When Is a Potato Chip Not Just a Potato Chip?

1.   Notebook Work/Discussion:

• Causes of Market Failures-Pgs 180-181-Create a Tree Map
• Distinguish between a positive and negative externality
• Identify methods the government uses to discourage negative externalities and encourage positive externalities

VI.  Classwork

• Page 179 Vocabulary (7)
• P 183 2-6 Q&A
• Whiskey fungus tarnishes homes in Kentucky Q&A

a) What is the negative externality and why is it a negative externality?
b) Comment on the likely success of different approaches to solve the problem and reduce the market failure

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