Tuesday, November 21st, 2017
Ensure that all other learning is complete before moving on to today's learning.
What: Asymmetric Information (AI)
How: Research and complete the booklet and then apply to American Healthcare market
Why: 'Perfectly competitive markets' assume perfect market information, however the absence of perfect market information by one of the parties to an economic transaction results in a form of market failure known as 'Asymmetric Information' leading to a misallocation of resources.
As an introduction to the topic read the section in Kognity.
Now watch the following clip to develop your understanding:
Use Pages 132 to 135 in Tragakes Economics for IB to complete the attached workbook.
What: Asymmetric Information (AI)
How: Research and complete the booklet and then apply to American Healthcare market
Why: 'Perfectly competitive markets' assume perfect market information, however the absence of perfect market information by one of the parties to an economic transaction results in a form of market failure known as 'Asymmetric Information' leading to a misallocation of resources.
As an introduction to the topic read the section in Kognity.
Now watch the following clip to develop your understanding:
Use Pages 132 to 135 in Tragakes Economics for IB to complete the attached workbook.
The healthcare market in America
The health care market in America can give some revealing insights into the problems of Asymmetric information, Moral Hazard and Adverse Selection.
Using the resources below, try to figure out why the market for healthcare poses particular problems. I have included some guiding questions at the bottom of today's learning to help you focus on the important issues.
Using the resources below, try to figure out why the market for healthcare poses particular problems. I have included some guiding questions at the bottom of today's learning to help you focus on the important issues.
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Guiding questions:
1.) Why do many Americans choose not to purchase healthcare insurance?
2.) Why particularly do young people choose not to purchase healthcare insurance?
3.) What type of market failure is this?
4.) Who dispraportionatley consumes healthcare insurance?
5.) What is this an example of?
6.) As a result, what happens to the price of healthcare insurance?
7.) Do consumers of healthcare consume at socially optimum levels?
8.) What did the Obamacare 'Mandate' attempt to achieve?
9.) What would happen to the number of healthy people insured?
10.) How does this help older Americans and the sick?
11.) The Republican plan requires people to have payed for insurance for 6 months before they can draw from it, why is this, what problem is it created to deal with?
12.) Who has all of the market information in this situation?
13.) How do health insurance companies try to find out about the health of their customers?
1.) Why do many Americans choose not to purchase healthcare insurance?
2.) Why particularly do young people choose not to purchase healthcare insurance?
3.) What type of market failure is this?
4.) Who dispraportionatley consumes healthcare insurance?
5.) What is this an example of?
6.) As a result, what happens to the price of healthcare insurance?
7.) Do consumers of healthcare consume at socially optimum levels?
8.) What did the Obamacare 'Mandate' attempt to achieve?
9.) What would happen to the number of healthy people insured?
10.) How does this help older Americans and the sick?
11.) The Republican plan requires people to have payed for insurance for 6 months before they can draw from it, why is this, what problem is it created to deal with?
12.) Who has all of the market information in this situation?
13.) How do health insurance companies try to find out about the health of their customers?
Monday, November 20th, 2017
What: Common Access Resources (CAR's)
How: Research and Discuss in groups or as a class 'what is the best way to protect CAR's'
Why: Many of the environmental tragedies that the world faces today are largely due to the fact that our oceans, the rainforests, the air and atmosphere are CAR's and suffer from the phenomenon known as the 'Tragedy of the Commons'
Complete the Booklet on market failure and then continue/start the booklet on Common Access Resources.
You can complete some research on the Economic theory of the 'Tragedy of the Commons'. Watch the clips below: The John Stossel clip argument is an interesting one, private property rights are the best way to protect a Common Access Resource. Would it be beneficial to privatise, the oceans? the rain forests? the air we breath? Have a watch and then see what you think? What are the other approaches to protecting CAR's? What are they and would they/do they work better and why??
In the final 15 minutes elect a chair and discuss the statement 'Common Access Resources would be better protected if private property rights could be enforced over them (Privatisation)'
How: Research and Discuss in groups or as a class 'what is the best way to protect CAR's'
Why: Many of the environmental tragedies that the world faces today are largely due to the fact that our oceans, the rainforests, the air and atmosphere are CAR's and suffer from the phenomenon known as the 'Tragedy of the Commons'
Complete the Booklet on market failure and then continue/start the booklet on Common Access Resources.
You can complete some research on the Economic theory of the 'Tragedy of the Commons'. Watch the clips below: The John Stossel clip argument is an interesting one, private property rights are the best way to protect a Common Access Resource. Would it be beneficial to privatise, the oceans? the rain forests? the air we breath? Have a watch and then see what you think? What are the other approaches to protecting CAR's? What are they and would they/do they work better and why??
In the final 15 minutes elect a chair and discuss the statement 'Common Access Resources would be better protected if private property rights could be enforced over them (Privatisation)'
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Friday, November 17th, 2017
Hi there, I hope that you are all recovering after your exploits! I notice that many of you have yet to finish the Kognity assessment on Market Failure.
1. ) This suggests that you have not yet completed all of the Market Failures booklet and/or the table from last lesson. If this is the case aim to complete the booklet and table by the end of today's lesson and the Kognity test.
2.)If you need extra learning to complete then begin to complete the booklet on common access resources attachedcommon_access_resources.docx.
3.) Home learning: Everyone should have completed all of the above activities by the Thanks Giving break.
1. ) This suggests that you have not yet completed all of the Market Failures booklet and/or the table from last lesson. If this is the case aim to complete the booklet and table by the end of today's lesson and the Kognity test.
2.)If you need extra learning to complete then begin to complete the booklet on common access resources attachedcommon_access_resources.docx.
3.) Home learning: Everyone should have completed all of the above activities by the Thanks Giving break.
November 14, 2017
Complete the Market Failures handout, make sure that you use either Kognity, Tragakes or Oxford. A reminder that your answers should be full explanations not one sentence answers.
Now complete some of your own research on how market failures resulting from externalities are (attempted at least to be) solved by governments. Use the attached table to support your research, try to find at least 3 examples for each. You can use a broad variety of websites, though make sure that the articles come from reputable and respected news agencies and media outlets. This activity Is good preparation for the research skills you need when identifying your own IA article next month.
Finally, complete the Kognity assessment on market failure.
Now complete some of your own research on how market failures resulting from externalities are (attempted at least to be) solved by governments. Use the attached table to support your research, try to find at least 3 examples for each. You can use a broad variety of websites, though make sure that the articles come from reputable and respected news agencies and media outlets. This activity Is good preparation for the research skills you need when identifying your own IA article next month.
Finally, complete the Kognity assessment on market failure.