AIS Market Failure Lesson #2

AIS Market Failure Lesson #2

Lesson 2: Externalities

Negative Production Externality

Positive Production Externality

Impact & Solution

Problem

Homework (Watch Videos & do the 2011B FRQ #2)

Welker - video

·      Market Failure – Negative Externality of Consumption

·      Market Failure – Positive Externality of Consumption

Waugh –  DUE Thursday 2011B FRQ #2 (Complete and have in class on Thursday)

AP Central - FRQ - 2011B FRQ #2

AP Central - FRQ - Answer - 2011B FRQ #2 Answer