1 / 12

Market Failure

GCSE ECONOMICS: UNIT 12. Market Failure. The e conomy at w ork. Lesson Objectives. Understand what is meant by market failure Produce a short 5 minute lesson on one of the types of market failure. Market Failure. In today’s lesson we will be looking at Market Failure

larue
Télécharger la présentation

Market Failure

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GCSE ECONOMICS: UNIT 12 Market Failure The economy at work

  2. Lesson Objectives • Understand what is meant by market failure • Produce a short 5 minute lesson on one of the types of market failure

  3. Market Failure • In today’s lesson we will be looking at Market Failure • Before understanding how a market fails it’s important you know what a market is! • Write down your own definition of a market

  4. What is a market? • A market is a place where buyers and sellers come together to conduct a transaction together • Markets left to operate freely have a good chance of operating efficiently • By operating efficiently, business costs can be kept low in order to improve profits • In this way, the market ensures that the resources are allocated efficiently

  5. What is market failure? • Market failure occurs when markets fail to allocate resources efficiently • This means the prices of goods and the quantities produced are not at the level that ensures that economic welfare is kept as high as possible • For example, if a market fails, some goods may be under-produced or not even produced at all

  6. Types of market failure • There are a number of different types of market failure, such as: • Merit goods/De-merit goods • Public goods • Imperfect competition e.g. monopoly • Positive externalities/ Negative externalities • Unequal distribution or income/wealth • Immobility of factors of production (e.g. immobility of labour)

  7. Types of market failure: Over to you • You have 15 minutes to research your chosen type of market failure • Produce a handout which includes the following; • a clear definition of your type of market failure • an explanation as to why it occurs • examples of your type of market failure in the real world • You will present your findings to the other groups

  8. Match the keyword to the expression which fits best Market Failure There is enough for everyone Non-rival You buy it….no you buy it! Non-excludable Too much or too little, but never just enough Free-rider You can’t stop me

  9. What do you see? Under-consumed!

  10. What do you see? Over-consumed!

  11. What do you see? Healthcare would beunder-consumed ifthe government didn’t step in!

  12. What do you see? Over-consumed!

More Related