Curriculum Portal

infoWhy this? Market Failure and Government Intervention is taught because it develops an understanding of situations where markets do not allocate resources efficiently and where the actions of consumers and producers can create costs or benefits for others. Students explore externalities, the causes and consequences of market failure, and the ways governments may intervene to improve outcomes for society. Market Failure and Government Intervention also encourages critical evaluation of government action by considering how intervention can sometimes create unintended consequences and lead to government failure.

scheduleWhy now? Market Failure and Government Intervention is taught after students have developed an understanding of how markets normally operate through supply, demand, and the price mechanism. Having explored how markets can allocate resources efficiently, students are now able to investigate situations where markets do not achieve the best outcomes for society. Market Failure and Government Intervention provides a natural progression into evaluating the effectiveness of government policies and develops the analytical and evaluative skills that underpin much of the rest of the economics course.