When should governments intervene in a market?

This BBC clip shows many Americans don't believe government intervention is needed in the market for trans fats


http://www.bbc.co.uk/news/world-us-canada-33155176

Unit 1 and 2: Should governments intervene in markets and the economy?

Nice summary from economicshelp

http://www.economicshelp.org/blog/5735/economics/should-the-government-intervene-in-the-economy/

Unit 1: Pollution permits as a method of reducing negative externalities: Cap and trade

From Marketplace whiteboard comes this great explanation of how the cap and trade in pollution permits should work

http://marketplace.publicradio.org/videos/whiteboard/cap_and_trade.shtml

They have many other videos explaining aspects of the financial system in innovative ways....and he always ends with the same throw away line

Unit 1: Government intervention to overcome market failure: Regulation in the US car industry

This BBC post is a good example of Government intervention to overcome market failure using regulation

http://news.bbc.co.uk/1/hi/world/americas/8056908.stm

a) What is the market failure that the government is trying to reduce?
b) How effective do you believe this policy is likely to be in reducing the market failure?

Unit 1: Government action to overcome market failure: Trans fats in California

An interesting article from the BBC on banning trans fats in California

http://news.bbc.co.uk/1/hi/world/americas/7526624.stm

a) Using a diagram, explain what sort of market failure trans fats represent
b) Why has California taken this action?
c) To what extent do you think the action will reduce the market failure?

Unit 2: Government legislation to reduce negative externalities: Rubbish in Japan

A great BBC video clip and article about a zero waste town in Japan

http://news.bbc.co.uk/1/hi/sci/tech/7499954.stm video
http://news.bbc.co.uk/1/hi/sci/tech/7502071.stm article

a) How does the council legislation reduce the negative externalities associated with waste?
b) What benefits are there to the town citizens of this system?
c) Comment on the likely success of such a scheme if it was introduced to your town/village/city

Unit 2 Government intervention revision article

From tutor2u comes this good revision guide on how govt's intervene when markets fail and some points to consider when evaluating the success of such policies

http://www.tutor2u.net/blog/files/Revision_Government_Intervention.pdf