Policies for Market Failure (Online Lesson)

In this online lesson, we draw together the various policies for tackling market failure (covered individually in other online lessons) and consider the similarities and differences by exploring some exam-style questions.

WHAT YOU'LL STUDY IN THIS ONLINE LESSON

• a review of the various types of market failure and possible policies for correcting market failure
• how to select appropriate policies for tackling specific market failures
• how to compare and contrast policies, using effective exam technique
• making synoptic links with market failure policies

Additional teacher guidance is available at the end of this lesson. Thank you to Penny Brooks and Jon Clark for their contributions to this lesson.

HOW TO USE THIS ONLINE LESSON

Follow along in order of the activities shown below. Some are interactive game-based activities, designed to test your understanding of policies to correct market failure. Others are based on short videos, including activities for you to think about and try at home, as well as some extra worksheet-based activities.

If you would like to download a simple PDF worksheet to accompany the video activities, you can download it here. You can print it off and annotate it for your own notes, or make your own notes on a separate piece of paper to add to your school/college file.

ACTIVITY 1: VIDEO - KEY TERM REVIEW

In this video, we review some of the main types of market failure, as well as the main types of policies that can be used for correcting those market failures. We then bring those topics together to consider the range of policies that can be used to tackle specific market failures.

ACTIVITY 2: GAME - SELECTING POLICIES

In this File Away interactive game, you get the chance to practise connecting appropriate policies to market failures.

ACTIVITY 3: RESEARCH AND THINKING TASK - FINANCIAL MARKET FAILURE

The topic of Financial Markets is usually covered in the Year 13 Macro course, but the key points from the Year 12 Micro topic of tackling market failure are fundamental. This activity provides a link between these two topics.

Try starting with this tutor2u "Too Big to Fail" set of notes and accompanying questions - you could discuss the possible answers to the questions with your teacher or classmates.

You could then follow it up by using this tutor2u essay planning guide on tackling financial market failure - watch the video and read the detailed essay plan. Is there anything else that you would have included?

For an extra challenge, you could read this transcript from a speech given by the European Central Bank, shortly after the financial crisis of 2007-2009. It considers the causes and policies needed, both micro and macro.

ACTIVITY 4: VIDEO - COMPARING POLICIES

In this video, we explore how you can compare the effectiveness of policies using strong exam technique and building powerful arguments. Our theme for practising this topic is policies for tackling the market failures associated with traffic congestion.

ACTIVITY 5: SOLVING THE PROBLEM OF HIGHER EDUCATION FUNDING

Download this tutor2u Assessment Mat, to practise the skill of reading a short case study on tackling the market failures associated with higher education provision. It also provides an introduction to synoptic thinking, which we will cover in the final video of this online lesson.

ACTIVITY 6: VIDEO - SYNOPTIC THINKING

In this final video for the online lesson, we explore how to make synoptic connections when considering policies for tackling market failure. The theme for our synoptic thinking is how to encourage more people to exercise.

ACTIVITY 7: APPLIED ESSAY PRACTICE

Here's a short data-response / context style case study on the market failures associated with plastic bags and policy responses. At the end of the case study, there is an Edexcel-style 15m essay question and an AQA-style 25m essay question. Choose whichever is most suitable for you. Have a go at writing an answer, and submit it to your teacher for assessment.

ADDITIONAL TEACHER GUIDANCE

This lesson comprises:

• around 25 minutes of guided video, spread across 3 videos, and with around 20 minutes of student activity and thinking time within those videos
• 1 interactive game, in which students get the opportunity to practise selecting appropriate policies for a range of market failures
• additional applied exam-style resources, on tackling financial market failure, funding higher education, and solving the market failures associated with plastic bags

The "core" of the lesson takes around 60 minutes, with the additional activities and written tasks taking as long as students would like to spend on them. Some suggested answers to the plastic bag applied essay task can be found here.