Khadeeja A - 9.3 Market Failures Assessment
Storyboard Text
- Merit Goods
- An economist!
- What do you want to be when you grow up?
- A teacher!
- Monopolies
- With our advanced technology and cheap labor, small, locally owned farms will never be able to keep up with our company!
- Public Goods
- Look at all the flowers in this beautiful park!
- Merit goods, like education, have multiple positive social and economic externalities, but many are neglected in the free market economy. Governments should provide more subsidies to things like the education system so that they can benefit the economy & society.
- De-Merit Goods
- An entrepreneur!
- Just one more....
- HAHAHAHAHSHHAHSHAHHHAHAHAHHAH
- Monopolies dominate industries, to the detriment of small, often more sustainable small businesses. When it comes to farming in particular, governments can provide more subsidies to local farms, which cut out huge transportation costs and boost each local economy.
- Public goods have benefit for everyone, but because they are not profitable, they are not naturally provided in a free market economy. This solution is already commonly implemented, but governments can use tax money to provide the beneficial public goods that the economy lacks.
- De-merit goods like alcohol and drugs can be purchased, but they harm their consumers. Governments can place extra taxes on these items, but because they are addictive, addicts will still pay any amount to get more (and in the case of drugs, the transactions are illegal and untraceable anyway). So, governments should also invest in rehab facilities and encourage those who need it to seek help.
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