Set 2 - Market Failure

A compilation of Microeconomic study resources that focus on market failure and its causes. It covers.
Externalities

• Costs and benefits (private, external, social, etc.)
• Negative production externalities
• Negative consumption externalities
• Positive production externalities
• Positive consumption externalities
  Types of Goods
• Free goods
• Economic goods
• Public goods
• Private goods
• Merit goods
• Demerit goods
  Monopoly Power
• How abuse of monopoly power results in market failure
• Why governments should regulate monopolies
• Government intervention and regulation of monopolies
  Inequality
• Inequality and why it persists in the free market
• Measures of inequality
• Government intervention: methods to reduce income and wealth inequality.
  Information Failure
• Causes of information failure
• Asymmetric information (Adverse selection and moral hazard)
• Methods to resolve information failure
• Behavioral insights and nudge theory