Policy and the Public Sector · Macroeconomics

Externalities and Public Goods

Understanding why markets sometimes fail to provide efficient outcomes and how the government intervenes.

Key Questions

  1. 1Why does the market under-produce goods with positive externalities like education?
  2. 2How can a carbon tax internalize the negative costs of pollution?
  3. 3What makes a good non-excludable and why does this lead to the free-rider problem?

Ontario Curriculum Expectations

ON: Market Failure - Grade 10ON: The Role of Government - Grade 10
Grade: Grade 10
Subject: Economics
Unit: Policy and the Public Sector
Period: Macroeconomics

Suggested Methodologies

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