Negative and Positive Externalities

INTRODUCTION

Today we will begin our study of market failure by analyzing markets in which negative and positive externalities occur. You should read the text chapter identified below in the homework section, watch the related videos for help in understanding this material, do the activities identified, in the homework section and be prepared for the Problem of the Day. This page contains all the information you need for today's class. Use the table of contents on the right to help you navigate.

HOMEWORK

1. Read Mankiw (Chapter 10).

2. Watch these videos.

AC/DC Economics

• Positive Externalities

• Negative Externalities

• A Cool Example

Khan Academy

• Negative Externalities

• Corrective taxes to remedy negative externalities

• Positive Externalities

ASSESSMENTS AND ACTIVITIES

Problem of the Day: Not today!

Lecture

• Negative and Positive Externalities

ENRICHMENT

TED Talks

• Timothy Bartik: The economic casefor preschool (positive externalities)

Related Readings

• Externalities

• Regulation

• Pollution Controls

• Recycling

• Information and Prices

• Economic Growth and the Environment

• Global Warming