Ap micro 6 1 intro to unit and public goods

Unit 6: Market Failures and the Role of the Government Length 3 Weeks TOTAL Assignments Problem Set #6

When should the government get involved in the economy? Worker Safety Laws Barber Shop Licenses Every society needs to decide how much government involvement is desirable Bank Bailouts

What is the Free Market? (Capitalism)

5 Characteristics of Free Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],The government’s job is to enforce contracts, secure property rights, and defend the country.

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Does the Free Market ever FAIL to meet society’s needs?

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How does the free market FAIL ?

The Four Market Failures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Market Failure #1: PUBLIC GOODS

If there was no government, how would schools, parks, and freeways be different? Would there be enough to meet our needs? Public Goods Video: Fire Department Auction

[object Object],[object Object],[object Object],[object Object],Public Goods

What’s wrong with this picture?

The Free Rider Problem ,[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],Does anyone free ride off you?

[object Object],[object Object],[object Object],[object Object],[object Object],What’s wrong with Free Riders?

[object Object],[object Object],Definition of Public Goods 2. Shared Consumption (Nonrivalry) ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Ap micro 6 1 intro to unit and public goods

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