7.2 Market Failures
Unit 2 Lesson 8: Market Failures
Main Idea
Inadequate competition, inadequate information, and immobile resources can result in market failures. When markets don't provide a good or service efficiently, that's a market failure. When markets fail, often governments step in to provide those services. Stuff like public education or military protection are good examples of market failures.
Lesson Objectives
By the end of this lesson, students should be able to:
Inadequate competition, inadequate information, and immobile resources can result in market failures. When markets don't provide a good or service efficiently, that's a market failure. When markets fail, often governments step in to provide those services. Stuff like public education or military protection are good examples of market failures.
Lesson Objectives
By the end of this lesson, students should be able to:
- Describe the problems caused by inadequate competition.
- Describe the importance of having adequate information.
- Describe the nature of resource immobility.
- Describe the nature of positive and negative externalities.
Reading Assignment
Read pages 174 - 176 in Economics: Principles & Practices. Complete the Guided Reading Activity (print it) as you read. Turn it in after you have completed it.