M7: Discussion-g

After reading Principles of Microeconomics and watching the videos in this module, consider you personal experiences and guide to understanding market failures.

• What is as externality?
• Consider some positive and negative externalities?
• Consider the economic field of mechanism design that tries to create proper defined incentives that yield desired outcomes.

In addition, consider the response of at least two other students. Please keep the reflection questions in mind as you watch the following videos. Please include your insights from the videos in your discussion response.

Reflection questions and their respective video links:

Note: you are only required to watch videos at the MRU link--YOU DO NOT HAVE TO COMPLETE THE EXERCISES AT MRU.

Externalities

https://mru.org/courses/principles-economics-microeconomics/externalities-definition-pigovian-tax(Links to an external site.)

The Coase Theorem

The Coase Theorem(Links to an external site.

Public Goods

Public Goods and Asteroid Defense(Links to an external site.)

Club Goods

https://mru.org/courses/principles-economics-microeconomics/club-goods-examples(Links to an external site.)

Tragedy of the Commons

https://mru.org/courses/principles-economics-microeconomics/tragedy-of-the-commons-examples-economics(Links to an external site.)

Moral Hazard & Adverse Selection

https://mru.org/courses/principles-economics-microeconomics/moral-hazard-adverse-selection

Again:

• What is an externality?
• Consider some positive and negative externalities?
• How does economics try to create properly defined incentives that yield desired outcomes.