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Externalities and Market Failure

Edexcel 9EB0T1-3cA-levelLesson packSubscription
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  • 9 questions
  • 40 marks
  • about 60 minutes
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Question types: short answer, calculation, multiple choice, fill the gap, matching.

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About this resource

Edexcel Economics B (9EB0) Theme 1, Unit T1-3 (spec ref 1.5.1) — private, external and social costs and benefits, positive and negative externalities of production and consumption, and how externalities cause market failure through the misallocation of resources and welfare loss.

16 slides.

Lesson outline

  1. Do Now — Retrieval
  2. Private, External and Social Costs and Benefits
  3. Hinge Check — External Cost vs Social Cost
  4. Negative Externalities — Production and Consumption
  5. How a Negative Externality Causes Market Failure
  6. Hinge Check — Reading the Diagram
  7. Positive Externalities — Production and Consumption
  8. Hinge Check — The Positive Externality Misconception
  9. The Big Picture — Externalities and Market Failure
  10. Apply It — A Noisy Night Out
  11. Main Activity — Classify the Externality
  12. Exam Practice — Assess (10 marks)
Unit bundleTheme 1 · Markets, consumers and firms
Part of: Theme 1 · Markets, consumers and firms: the whole unitEvery resource in the unit in one zip.

More from Theme 1 · Markets, consumers and firms