Economics – 4/30/15

I.  Bellwork

• Provide an example of a positive externality  and explain how it impacts the 3rd party positively.
• Provide an example of a negative externality  and explain how it impacts the 3rd party negatively.

II.  Objective:

• Describe externalities, distinguish between positive and negative externalities, and identify methods used to discourage negative externalities and encourage positive externalities.
• Evaluate various explanations for actions or events and determine which explanation best accords with textual evidence

III.  Notebook Work/Discussion:

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

IV.  Classwork

A.  Whiskey fungus tarnishes homes in Kentucky  Q&A

1. What is the negative externality and why is it a negative externality?
2. Is there any positive externalities with having a distillery in the community?
3. Construct and describe 2 different approaches to solve the problem and reduce the market failure

B.  Create questions for Section 7-2

1. Construct 5 True & False Questions
2. Construct 8 Multiple Choice questions with 4 choices (Circle Answers)

Economics W2015