Market+Failure+Calendar

[|Boundless Learning]: Additional resources specifically developed for the textbook chapters below can be found by clicking the link to the left. **Beware**: You will have to sign up with Boundless Learning and choose Mankiw's textbook first. Then, you will have to search for the right chapter.

=**__October 31__:** Negative and positive exernalities (Syllabus Section 1.4) =


 * __Homework Due__: Read Mankiw - Chapter 10 (Externalities and Market Efficiency Section) and watch the videos below.
 * [|Introduction to 6 types of market failure]
 * [|Negative externalities of production]
 * [|Negative externalities of consumption]
 * [|Negative externalities video #2]
 * [|Positive externalities video]
 * [|Positive externalities of consumption video]
 * [|Positive externalities of consumption video #2]
 * [|The problems posed by externalities for society are illustrated in this clip from Dr. Seuss' The Lorax]
 * __Khan Academy__
 * [|Negative Externalities]
 * [|Corrective taxes to remedy negative externalities]
 * [|Positive Externalities]
 * [|Tragedy of the Commons]


 * __Assessments and A__ __ ctivities __ : Lecture on externalities (PDF below)
 * [[file:Externalities.pdf]]


 * __Related Readings__
 * [|Externalities]
 * [|Regulation]
 * [|Pollution Controls]
 * [|Recycling]
 * [|Information and Prices]
 * [|Economic Growth and the Environment]
 * [|Global Warming]

=**__November 2__:** Government remedies for market failure (Syllabus Section 1.4)=


 * __Homework Due__: Read Mankiw (Chapter 10 - Public Policies Toward Externalities and Private Solutions To Externalities sections)

> >> >>>>>
 * __Assessments and Activities__: Free-response/problem and lecture
 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * __Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on people who do not drink and drive__.
 * Illustrate the market for alcohol, identifying the market equilibrium level of output and the socially optimal (efficient) level of output.
 * On your graph, shade the area corresponding to the deadweight loss. Explain.
 * __//Lecture//__: Government remedies and market failure (PDF below)
 * [[file:Government and Externalities.pdf]]

>> [|Free Market Environmentalism]
 * __Related Readings__
 * [|An Emissions Plan Conservatives Could Warm To by Arthur Laffer]
 * [|Cost-benefit analysis]
 * [|Law and Economics]
 * [|Liability]
 * [|Property Rights]
 * [|How Property Rights Solve Problems]
 * [|Rent Seeking]
 * [|Risk and Safety]
 * [|Government Growth]
 * [|Congestion Pricing]

=**__November 9__:** Public goods and common resources (Syllabus Section 1.4)=


 * __Homework Due__: Read Mankiw (Chaper 11) and videos below
 * media type="youtube" key="NZAwGoIAFgM" height="315" width="560"
 * [|Video on public goods and common resources]

> >> >>>>
 * __Assessments and Activities__: Free-response/problem and lecture
 * //__Free-response/problem__//: You will work cooperatively with your partner to construct a response to the following prompt.
 * __ Suppose the government decides to issue tradable permits for a certain form of pollution __.
 * Does it matter for economic efficiency whether the government distributes or auctions the permits?
 * If the government chooses to distrtibute the permits, does the allocation of permits among firms matter for efficiency?
 * __//Lecture//__: Public goods and common resources (PDF below)
 * [[file:Public Goods and Tragedy of Commons.pdf]]


 * __Related Readings__
 * __[|Property Rights]__
 * [|Public Goods]
 * [|Tragedy of the Commons]
 * [|Urban Transportation]
 * [|Health Care]
 * [|Health Insurance]
 * [|Intellectual Property]

=**__November 13__:** Asymmetric information (Syllabus Section 1.4) =


 * __Homework Due__: Read Mankiw (Chapter 22 - Asymmetric Information section)


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.

>>>>
 * __ Both public goods and common resources involve externalities __
 * 1) Are the externalities associated with public goods generally positive or negative? Use examples in your answer. Is the quantity of public goods supplied by the free market greater than or less than the socially efficient quantity?
 * 2) Are the externalities associated with common resrources generally positive or negative? Use examples in your answer. Is the use of common resources in a free market socially efficient?
 * __//Lecture//__//://Asymmetric Information (PDF below)
 * [[file:Asymmetric Information.pdf]]


 * __Related Readings__
 * __[|Information]__
 * [|Information and Prices]
 * [|The Internet]
 * [|Unintended Consequences]
 * [|Insider Trading]
 * [|Health Care]
 * [|Health Insurance]
 * [|Risk and Safety]

=**__November 15__:** Linear demand and supply functions and externalities=


 * __Class Activity__: More practice using linear supply and demand functions.

=**__November 20__:** Test on market failure=