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Peer Review

Microeconomics - When Markets Fail

Reviewed:
Jun 17, 2021 by Business
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Ratings

Overall Rating: 5.0 stars
Content Quality: 5.0 stars
Effectiveness: 5.0 stars
Ease of Use: 5.0 stars
Overview:

This lesson supports the Market Failure and the Role of Government section of the Advanced Placement Microeconomics curriculum. Students need to understand the conditions under which a competitive market fails to produce the socially-optimal quantity of a good or service.They also need to know what steps a government can take to correct a negative externality.

Type of Material:

Assignment

Recommended Uses:

The best use of this material is over multiple in-class periods. In class lecture, discussons,completitions of assignments.

Technical Requirements:

Access to Adobe Acrobat

Used Chrome

Identify Major Learning Goals:
  • Explain how private market activities can cause externalities.
  • Define and give examples of third-party costs (also called negative externalities or social spillover costs).
  • Define and give examples of third-party benefits (also called positive externalities or social spillover benefits).
  • Analyze why positive and negative externalities cause underproduction or overproduction of goods and services in a competitive market.
  • Analyze the effectiveness of government policies designed to remedy problems caused by positive or negative externalities.
  • Explain the Coase Theorem and use it to analyze how negotiations among private property owners can resolve market allocation problems.
  • Analyse how marginal analysis can determine the optimum amount of pollution cleanup.
Target Student Population:

High School, College General Ed, College Lower Division

Lower level Economics classes

Prerequisite Knowledge or Skills:

This is lesson Lesson 2 in Unit 5: The Role of Government in CEE's Advanced Placement Microeconomics (4th Edition).  I would assume students should complete lesson 1 before moving to lesson 2, as well as completing each unit as they build on each other.

Content Quality

Rating:
Strengths:
  • Material is theoretically sound, thorough, and well-explained.
  • The concepts are well delivered in the material
  • There is good building upon the material.
  • There is a good delivery method with a combination of lecture, discussion, application.
Concerns:

None.

Potential Effectiveness as a Teaching Tool

Rating:
Strengths:
  • The teaching-learning goals are very clear and easily identifiable. 
  • The processes used to deliver the content promotes conceptual understanding for students.
  • The material is challenging because it requires students to critically think through very realistic examples.
  • It introduces them to theorems and an economist who made a significant contribution on this topic
Concerns:

None

Ease of Use for Both Students and Faculty

Rating:
Strengths:
  • There are clear and accurate instructions for using these teaching materials. 
  • The website layout is clear and consistent. 
  • The Teaching lesson document, student resource manual, and a solutions manual is easily located and utilized.
  • Material includes three activities and two visuals which can be given to the students as handouts.
Concerns:
  • Visually impaired students or students who have trouble with visual-spatial data in graphs, charts, or tables, but this is difficult to assess based on the materials provided.
Other Issues and Comments:

Excellent material appropriate for AP or college-level courses in economics

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