AP Economics – 1/06/2020
I Bellwork
Page 758 FYI – Explain a solution that may assist in resolving the problem
II. Objectives:
- Characterize public goods and explain why markets fail to supply efficient quantities of public goods
- Define artificially scarce goods and explain why they are underconsumed
- Describe how government intervention in the production and consumption of these types of goods can make society better off
III. Discussion Public Goods P753-760
A. Private Goods – And Others
- Characteristics of Goods Figure 76.1
a. Excludable & Rival in consumption
2. Why Markets Can Supply Only Private Goods Efficiently
a. Free-rider Problem
B. Public Goods (Nonexcludable & Nonrival)
- Providing Public Goods
- How Much of a Public Good Should Be Provided? MSC=MSB
C. Common Resources (Nonexcludable & Rival)
- The Problem of Overuse
- The Efficient Use and Maintenance of a Common Resource
a. Tax/Regulate
b. Trade-able Licenses
c. Assign Property Rights
D. Artificially Scarce Goods (Excludable & Nonrival)
IV. Classwork
- 76.1 WS on iLearn
- 6.1- Public Goods Practice page 2 on iLearn
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