FOUNDATION FOR ECONOMIC EDUCATION

Prepare for the Economics Olympiad Competition

Externalities occur when the production or consumption of a good creates spillover costs or benefits for third parties not reflected in market prices, leading markets to overproduce or underproduce relative to the socially efficient level.

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Course curriculum

    1. Introduction to Externalities

    2. An Introduction to Externalities

    3. Private v. Social Costs and Benefits

    4. Why Externalities Matter

    5. Externalities as Information and Coordination Problems

    6. Do Not Rush to Government Intervention

    7. Negative Consumption Externality

    8. Negative Production Externality

    9. Graphing Negative Externalities MRU Interactive

    10. Positive Consumption Externality

    11. Positive Production Externality

    12. External Benefits

    13. Graphing Positive Externalities MRU Interactive

    14. Addressing Externalities

    15. Command and Control

    16. Tradable Pollution Permits

    17. Externalities Quiz

    18. Why You Should Read Ronald Coase

Additional Market Failure and Strategic Behavior Modules

Economics Olympiad Prep Modules

Use these modules to prepare for success in the Economics Olympiad competition.