Questions About Remote Learning? Click Here

Eco part 1
Updated: 10/9/2020
Eco part 1
This storyboard was created with

Storyboard Text

  • This factory moved to another place recently, and now many workers lost their jobs. The name of this action is resource mobility and is one of the market failures.
  • One solution for this issue is a tax over relocation of different types of companies.
  • Another market failure is the fault of public goods such as highways and parks, in some areas. This will influence the nearby market since it will have difficulties over the roads for example.
  • The solution to this problem is the investment of the government.
  • This health insurance company has access to all of their patients, with that this company would sell policies to healthy people. With that, we can conclude that not enough information can cause market failure.
  • A solution is a previous information given by the government.
  • Another market failure reason is the externality or spillover effect, it consists ofwhen the cause and benefit of activity is not reflected in the market prices that the user pays.
  • The government could resolve this problem by taxing those goods by their spillover costs.
  • The government should assure competition by influencing more companies to join the market.
  • There is only one market in the region, this causes a market failure, the company might reduce the inefficient use of scarce resources.
  • Those were the five market failures. Thanks for your attention!
Over 14 Million Storyboards Created
Storyboard That Family