Syllabus 2.8 
​Market Failure
Syllabus 2.8 Market Failure
Additional Resources:
Peer Tutoring: Market Failure Blue BOx
PART 1
PART 2
 River Wye Externalities
VID 16: River Wye Pollution + Market Failure
Solutions to Market Failure
Research Modules
VID 1: Plastic: market failure?
VID 2: Sports wear: market failure?
VID 3: Welker on Market Failure
VID 4: Bhopal Disaster
VID 10: Tutor2U on Externalities
VID 13: Plastic in the Ocean 1
VID 14: Plastic in the Ocean 2
VID 15: Tragedy of the Commons
VID 6: Foodie - Externalities
VID 7: Global warming: Zimbabwe
VID 8: BBC Climate Change
VID 9: Patrick Moore - a  Greenpace critic
VID 11: Sustainability: Doughnut Economics
VID 12: Sustainability: Doughnut Economics in Amsterdam
HP 3 Practice:
Sugary Drinks in NZ
2.8 - Key Terms
1.     Market failure

2.     Welfare loss

3.     EU Emission Trading Scheme (EU ETS)

4.     extending property rights

5.     external benefit

6.     external cost

7.     marginal private costs (MPC)

8.     marginal social costs (MSC)

9.     market failure

10.  merit goods

11.  nationalization

12.  negative externalities of consumption

13.  negative externalities of production

14.  positive externalities of consumption

15.  positive externalities of production

16.  privatization

17.  public goods (non rivalrous / non excludable)

18.  free rider problem

19.  demerit goods

20.  merit goods

21.  tradable permits

22.  regulator

23.  common access resources

24.  sustainability

HL

25.  asymmetric information

26.  monopoly


Syllabus phrases to watch out for:

1.     public goods (non rivalrous / non excludable)

2.     free rider problem

3.     carbon taxes

4.     ‘cap and trade’ scheme

For HL students should watch out for the following in relation to item 41 of the syllabus:

5.     nationalization

6.     trade liberalization

note: 5+6 are possible responses to monopoly and government could use options 5 and 6 to reduce the anti competitive nature of the monopoly.