Economics – 11/17/14
I. Bellwork Q&A
- What is happening in the picture? (Not a fire.)
- Who is impacted?
- How are they impacted?
- 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
- Determine central ideas of a text and analyze their development over the course of the text, including how they interact and build on one another to provide a complex analysis;
III. Retakes Wednesday @ 2:30 in G204 (Retakes bring 3 paragraphs for section summaries)
IV. Video & Discussion
V. 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
VI. Classwork
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.
- 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) Is there any positive externalities with having a distillery in the community?
c) Construct and describe 2 different approaches to solve the problem and reduce the market failure
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