This is a Powerpoint (and accompanying Notes/Key Terms sheet) that I created for my own teaching of the new (linear) AQA A-level Economics specification (7135). As I was also using the AQA-approved textbook (Powell & Powell, 2016) the two follow a similar route through the material.
Topics covered in this Powerpoint:
4.1.8.3 Public goods, private goods and quasi-public goods
• Pure public goods are non-rival and non-excludable and recognition of the significance of these characteristics.
• The difference between a public good and a private good.
• Circumstances when a public good may take on some of the characteristics of a private good and become a quasi-public good.
• The significance of technological change, eg. television broadcasting is now excludable.
• The free-rider problem.
• The tragedy of the commons
4.1.8.4 Positive and negative externalities in consumption and production
• Externalities exist when there is a divergence between private and social costs and benefits.
• Why negative externalities are likely to result in over-production and that positive externalities are likely to result in underproduction.
• Why the absence of property rights leads to externalities in both production and consumption and hence market failure.
• Students should be able to illustrate the misallocation of resources resulting from externalities in both production and consumption, using diagrams showing marginal private and social cost and benefit curves.
4.1.8.5 Merit and demerit goods
• The classification of merit and demerit goods depends upon a value judgement.
• Such products may be subject to positive and negative externalities in consumption.
• How under-provision of merit goods and over-provision of demerit goods may also result from imperfect information.
• Students should be able to illustrate the misallocation of resources resulting from the consumption of merit and demerit goods using diagrams showing marginal private and social cost and benefit curves.
• It should be understood that not all products that result in positive or negative externalities in consumption are either merit or demerit goods.
As well as the usual Key Terms sheet, there is a pre-lesson task so that students have looked over their Year 1/AS-level notes related to this topic.
Topics covered in this Powerpoint:
4.1.8.3 Public goods, private goods and quasi-public goods
• Pure public goods are non-rival and non-excludable and recognition of the significance of these characteristics.
• The difference between a public good and a private good.
• Circumstances when a public good may take on some of the characteristics of a private good and become a quasi-public good.
• The significance of technological change, eg. television broadcasting is now excludable.
• The free-rider problem.
• The tragedy of the commons
4.1.8.4 Positive and negative externalities in consumption and production
• Externalities exist when there is a divergence between private and social costs and benefits.
• Why negative externalities are likely to result in over-production and that positive externalities are likely to result in underproduction.
• Why the absence of property rights leads to externalities in both production and consumption and hence market failure.
• Students should be able to illustrate the misallocation of resources resulting from externalities in both production and consumption, using diagrams showing marginal private and social cost and benefit curves.
4.1.8.5 Merit and demerit goods
• The classification of merit and demerit goods depends upon a value judgement.
• Such products may be subject to positive and negative externalities in consumption.
• How under-provision of merit goods and over-provision of demerit goods may also result from imperfect information.
• Students should be able to illustrate the misallocation of resources resulting from the consumption of merit and demerit goods using diagrams showing marginal private and social cost and benefit curves.
• It should be understood that not all products that result in positive or negative externalities in consumption are either merit or demerit goods.
As well as the usual Key Terms sheet, there is a pre-lesson task so that students have looked over their Year 1/AS-level notes related to this topic.
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Clear and concise information which recaps AS well and has clear diagrams, a big help which has saved me a lot of planning time - thank you!
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