Lesson: Market Failure and the Role of the Government Economics

Students will be able to

• distinguish between private, public, and social wants,
• define market failure,
• understand reasons behind market failure and how it motivates government intervention in the economy,
• understand the following economic roles of the government: satisfying public and social wants, achieving economic growth and stability, and achieving equity,
• understand the following pillars of capitalism: private ownership, profit motive, and market mechanism,
• define privatization and understand the benefits of its different forms.