Economics – 11/20/18

I.   Bellwork: Q &A

A.  Obama moves to curb car emissions

1. What is the market failure that the government is trying to reduce?
2. How is the government attempting to fix the failure?
3. What government agency/agencies may be involved?
4. How effective do you believe this policy is likely to be in reducing the market failure?

II. Objective:

• Discuss and provide analysis of the societal impact externalities and market failures (tragedy of the commons) while also exploring possible methods to resolve these issues..
• Integrate and evaluate multiple sources of information presented in diverse formats and media in order to address a question or solve a problem.

III.  Discussion: Externalities, Public Goods & Tragedy of the Commons

A.  Whiskey fungus tarnishes homes in Kentucky

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

B.  King of the Hill – Price Fixing   https://www.dailymotion.com/video/x5vc54z

C.   Tragedy of the Commons

1. John Stossel – Tragedy Of The Commons
2. South Park: Tragedy of the Commons
   1.  Explain the economic concept the tragedy of the commons.
   2.  Explain how the South Park video is an example of the tragedy of the commons

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IV.   Classwork/Homework

A.  Ch7 – Enrichment Activities:  Complete a Four Square

1.  Create an example of a situation illustrating the Tragedy of the Commons.
2. Provide detail and explain why your example illustrates the tragedy of the commons.
3. Provide a solution/strategy that may be successful used to correct the problem and explain how it will work in detail.

Economics F2018