Externalities
This active lesson emphasizes the four major externalities found when production and consumption affect individuals outside of the immediate producer and consumer. After learning basic vocabulary associated with the concepts, students will demonstrate their understanding of the causes and consequences of each type of externality. Finally, students will practice how to draw and label graphs of the four types of externalities and identify any type of government intervention necessary to reduce deadweight loss in a transaction.
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Education Level:
9-12
Subjects:
AP Economics
,
Economics
Concepts:
Markets
,
Role of Government
Resource Types:
Lesson
Languages:
English
