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Market Failure - Externalities
Table of Contents
Topic pack - Microeconomics - introduction
1.1 Competitive Markets: Demand and Supply
1.1 Competitive Markets: Demand and Supply - notes
1.1 Competitive markets - questions
1.1 Competitive markets - simulations and activities
1.2 Elasticities
1.2 Elasticities - notes
Section 1.2 Elasticities - questions
Section 1.2 Elasticities - simulations and activities
1.3 Government intervention
1.3 Government Intervention - notes
1.3 Government intervention - questions
1.3 Government intervention - simulations and activities
1.4 Market failure
1.4 Market failure - notes
The meaning of externalities
Types of externalities
How do externalities affect allocative efficiency?
Negative externalities of production
Negative externalities of consumption
The economic theory of traffic congestion
Demerit goods
Government responses - demerit goods
Possible government responses to externalities
Direct government provision
Extension of property rights
Taxes and subsidies
Tradeable pollution rights
Regulation, legislation and direct controls
Positive externalities of production
Positive externalities of consumption
Merit goods
Why might merit goods be underprovided by the market?
Government responses - merit goods
Public goods
Common access resources & sustainability
The tragedy of the Commons
Common access resources in practice
Sustainability
Threats to Sustainability
The threat to sustainability from the use of fossil fuels
The threat to sustainability from poverty
Government responses to threats to sustainability
Cap and Trade Schemes
Promoting Clean Technologies
The 'dirty side' of cleaner technologies
International responses to threats to sustainability
Asymmetric information
Abuse of monopoly power
Inequality
Section 1.4 Market failure - questions
Section 1.4 Market failure - simulations and activities
1.5 Theory of the firm
1.5 Theory of the firm - notes (HL only)
Section 1.5 Theory of the firm - questions
Section 1.5 Theory of the firm - simulations and activities
Print View
Positive externalities of consumption - Diagram
Syllabus: Explain that merit goods are
goods whose consumption
creates external benefits.
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Positive externalities of consumption