Name______________________________________Hour__________Date_________________

6. Market Failures: What Are Externalities and Public Goods?

market failures:________________________________________________________________

Includes externalities and public goods

An externality is _______________________________________________________________

A negative externality is a ___________________________________________

Examples:

A positive externality is a ____________________________________________

Examples:
a technology spillover _________________________________________
____________________________________________________________
Example:

Why are they failures:__________________________________________________________

_____________________________________________________________________________
goods that generate negative externalities ___________________________________________
______________________________________________________________________________
goods and services that generate positive externalities _________________________________
______________________________________________________________________________

public goods __________________________________________________________________

______________________________________________________________________________
Examples:

Name______________________________________Hour__________Date_________________
Nonexcludable ________________________________________________________________
______________________________________________________________________________

nonrival in consumption ________________________________________________________

free-rider problem _____________________________________________________________