ILO:
a) Distinction between private costs, external costs and social costs
b) Distinction between private benefits, external benefits and social benefits
c) Use of a diagram to illustrate:
o the external costs of production using marginal analysis
o the distinction between market equilibrium and social optimum position
o identification of welfare loss area
d) Use of a diagram to illustrate:
o the external benefits of consumption using marginal analysis
o the distinction between market equilibrium and social optimum position
o identification of welfare gain area
e) The impact on economic agents of externalities and government intervention in various markets
a) Distinction between private costs, external costs and social costs
b) Distinction between private benefits, external benefits and social benefits
c) Use of a diagram to illustrate:
o the external costs of production using marginal analysis
o the distinction between market equilibrium and social optimum position
o identification of welfare loss area
d) Use of a diagram to illustrate:
o the external benefits of consumption using marginal analysis
o the distinction between market equilibrium and social optimum position
o identification of welfare gain area
e) The impact on economic agents of externalities and government intervention in various markets
Revision webinar
Watch and consolidate your knowledge of negative and positive externalities diagrams:
|
Negative Externalities and Market Failure I A Level and IB Economics
|
Positive Consumption Externalities I A Level and IB Economics
|
External Cost example
Examine two external costs from junk food. (8 marks)
Using an appropaite diagram, explain why junk food would be considered a form of market failure. (5 marks)
Using an appropaite diagram, explain why junk food would be considered a form of market failure. (5 marks)
|
How Junk Food is Transforming Brazil
|
Chris Robinson, BBC South Today: Millions spent treating obesity on the NHS
|
Additional reading:
The story of a £4 Boohoo dress: cheap clothes at a high cost
The story of a £4 Boohoo dress: cheap clothes at a high cost
External Benefit example
|
Examine two external benefits associated to a degree course. (8 marks)
Is It Worth Going to University? | Good Morning Britain
|
Explain how Government intervention can reduce the level of market failure in consumption. (5 marks)
FIVE A DAY - Kind of day | NHS
|
Pleanary
For the following services, research & identify the relevant PC & PB, and identify if you believe the good/service to be over produced or under consumed based upon the relevant EC & EB you can link to the PC & PB. Draw a diagram to support each example:
- Transport,
- Extraction, mining and forestry,
- Energy generation,
- Chemical manufacturing,
- Health care
- Education.