Causes of market failure: externalities; public goods; asymmetric information

The resource contextually considers three causes of market failure. Externalities focuses on market failure of over and under consumption and production. Public goods considers the characteristics public and private goods, quasi goods and the free rider problem. The presentation will last approximately and worksheets will last approximately five hours. The worksheet attached as an excellent summary/revision tool that allows students to understand the similarities and differences of the four main externalities diagrams with some useful hints such as how to show the welfare loss triangle. The other sheet provided is the complete teacher version of the externalities worksheet.