Unit 1: Markets are Efficient, Except . . . Intro to Microeconomics

Lesson 5a: Government Interference in Markets and Market Failures (Negative Externalities)

Assignments: Readings

pp. 67-70, (19th, 61-64), "Application: Government Set Prices", "Last Word: A Legal Market for Human Organs?" Audio: http://www.marketplace.org/2013/08/29/fast-food-strike-walk-outs-and-drive-throughs p. 84, (19th, 93), "Market Failures in Competitive Markets" pp. 96-103,(19th, 104-111), "Externalities", "Society's Optimal Amount of Externality Reduction", "Consider This: The Fable of the Bees", "Last Word: Carbon Dioxide Emmissions, Cap and Trade, and Carbon Taxes" Read: http://economics.about.com/od/externalities/ss/A-Negative-Externality-on-Production.htm Read: https://www.yaleclimateconnections.org/2017/10/mexico-launches-a-carbon-market/ Read: Top Economists Back New Carbon Tax Plan, But It Still Wouldn't Be Enough Lecture Outline

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