Subject:
Economics
Material Type:
Module
Level:
Community College / Lower Division, College / Upper Division
Provider:
Ohio Open Ed Collaborative
Tags:
Consumer Surplus, Economic Efficiency, Government Intervention, Price Ceilings, Price Floors, Producer Surplus, Supply/Demand Model
License:
Creative Commons Attribution Non-Commercial
Language:
English
Media Formats:
Braille/BRF, eBook, Graphics/Photos, Text/HTML, Video

Education Standards (3)

Economic Efficiency and Government Intervention: Course Map & Recommended Resources

Overview

This topic is not often covered explicitly  in a principles of macroeconomics course. Nonetheless, the topic of economic systems might lead to coverage of efficiency and government intervention.

Learning Objectives

  1. Identify consumer and producer surplus (1, 16)
  2. Understand the concept of economic efficiency (1)

  3. Examine cases for and against government intervention (16)

  4. Illustrate the impact of price floors and ceilings with the supply/demand model (9,16)

  5. Illustrate the impact of taxes with the supply/demand model (9,16)

NOTE: This Module meets Ohio TAG's 1, 9 and 16 for an Intro to Macroeconomics Course

Recommended Textbook Resources

Resource One:

Demand, Supply and Efficiency

Important Notes for the instructor regarding this chapter:

This topic is not often covered explicitly  in a principles of macroeconomics course. Nonetheless, the topic of economic systems might lead to coverage of efficiency and government intervention. Section 3.5 is included in the main text’s demand and supply chapter, and covers the first 4 learning objectives.

Principles of Macroeconomics 2e. OpenStax CNX. Jun 4, 2018 , Section 3.5, pages 71-82

Chapter 3: Key Terms

Chapter 3: Key Concepts and Summary

Chapter 3: Self Check Questions

Chapter 3: Review Questions

Chapter 3: Critical Thinking Questions

Chapter 3: Problems

Resource Two:

Elasticity and Pricing

The topic of tax incidence is included in Section 5.3 in the chapter on elasticity. Section 5.3, pages 130-131.

Chapter 5: Key Terms

Chapter 5: Key Concepts and Summary

Chapter 5: Self Check Questions

Chapter 5: Review Questions

Chapter 5: Critical Thinking Questions

Chapter 5: Problems

Supplemental Content/Alternative Resources

Principles of Economics: Markets, Maximizers and Efficiency

Principles of Economics contains a chapter on Economic Efficiency (Chapter 6).

Important notes for the instructor regarding this source:

Principles of Economics is adapted from a work produced and distributed under a Creative Commons license (CC BY-NC-SA) in 2011 by a publisher who has requested that they and the original author not receive attribution. This adapted edition is produced by the University of Minnesota Libraries Publishing through the eLearning Support Initiative.

This adaptation has reformatted the original text, and replaced some images and figures to make the resulting whole more shareable. This adaptation has not significantly altered or updated the original 2011 text. This work is made available under the terms of a Creative Commons Attribution-NonCommercial-ShareAlike license.

This is a derivative of Principles of Economics by a publisher who has requested that they and the original author not receive attribution, which was originally released and is used under CC BY-NC-SA. This work, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Topic Exercise

Since this topic is micro-oriented and would generally be covered only briefly, a data question has not been included.

Active Learning Exercise

The Concert Ticket Industry Is Still Broken

The article above is not in Creative Commons and is not an OER, but is freely available online. It contains an excellent overview of the inefficiencies of concert ticket sales, market solutions, additional problems, and the argument for government intervention. The following questions lend themselves to a classroom or small group discussion.

  • What is the primary cause of the original inefficient outcome?
  • How did the ticket market respond to create a solution?
  • What secondary cause was created by the private solution?
  • What government intervention was used to deal with this solution?
  • What is your opinion on the current state of this market?
  • Do you have ideas for other solutions?