Unpacked Content
Knowledge
Students know:
- The roles of government in a market economy.
- The purpose of each of the government's roles in a market economy.
- How to identify examples of the government acting in each of its roles in a market economy.
- The different types of market failures.
Skills
Students are able to:
- Identify the ways in which governments, including the United States government, participate in the economy.
- Determine the impact of government actions in the market.
Understanding
Students understand that:
- There are specific causes market failures.
- Government action can sometimes correct for failures of private markets.
- Government actions impact the market.
Vocabulary
- positive externalities (spillover benefits)
- negative externalities (spillover costs)
- public goods and services
- tragedy of the commons
